Messages of the President Book 3: Manuel L. Quezon (Volume 1)

MESSAGES OF THE PRESIDENT

MANUEL L. QUEZON

1935-1944

BOOK 3 | VOLUME 1

Official Month in Review

News Summary, Philippine Magazine: October 17 - November 20, 1935

News Summary
The Philippines

Oct. 17 . — The Philippine Legislature adjourns. Governor General Frank Murphy states, “The Legislature did not a
good job. It passed every important piece of legislation before it”.

Both the Governor-General and President-elect Manuel L. Quezon are targets of fiery attacks at a meeting held on
the grounds of General Emilio Aguinaldo’s home at Kawit, Cavite, the former for having done nothing for the
common people and the latter for having changed from a Mason to a Knight of Columbus, since when "he has been
a tool of the Archbishop”.

Secretary of Justice Jose Yulo writes a letter to Aguinaldo requesting him to come to his office for a conference and
to furnish the department with specific information with respect to alleged election frauds so that they may be
investigated, indicating that the accusations in the Aguinaldo letter are in general terms not furnishing a due basis for
action. “Having made the charges,” state Y ulo, “General Aguinaldo will have to prove them or make an effort to do
so unless he wants to lay himself open to the charge that he was making gratuitous statements reflecting upon the
integrity of the government and of election officials”, The Legislature, before adjourning, referred the Aguinaldo
communication to the Committee on Elections.

Oct. 18 . — Aguinaldo rejects Yulo’s invitation, stating that in requesting the Governor-General to forward his
communication to the President of the United States his “idea was to withdraw the same from the jurisdiction of the
Philippine authorities”, and declaring that he has “lost faith in the officials of our government called upon to
investigate my charges”. “I consider my protest here ended and see no reason for me to appear before the election
committee of the Legislature of before anybody else.”

Charges are filed in Cavite against Wenceslao Vinzons, alleged to have advocated the assassination of Quezon and
Vice-President-elect Sergio Osmena in a speech at Kawit on September 24, and against Porfirio de Juan, also
accused of having advocated the assassination of Quezon, branding him as “Public Enemy No. 1” on September 26.
Alfonso Sarayba is accused of having assaulted agents in authority for having incited the people to beat and kill
agents of the Constabulary at Kawit on October 2.

Oct. 19 . — Reported in the press that on October 17 Aguinaldo wrote the Governor -General that if no free and
independent investigator can be appointed to look into his charges of fraud, that the correspondence be sent to the
President. It is stated at Malacanang that the entire correspondence will be forwarded as a routine matter. Reported
that Aguinaldo has also sent cables of protest to the heads of the Spanish war veterans and the American Legion,
asking for their intercession to secure the rights of free assembly and free speech in the Philippines.

Aguinaldo is summoned to appear Monday before a joint session of the Senate and House committees on elections
where he will be given an opportunity to substantiate his charges.

Reported that the meetings at Kawit have been shifted to the General’s Amaya hacienda near Tanza and are
conducted there indoors in his summer house.

Oct. 20 . — Teodoro Asedillo, Laguna bandit, demands P5000 ransom for five persons he has kidnapped during the
past few weeks. He recently captured a girl whom he forced to marry one of his men, shooting and seriously
wounding the girl’s father who tried to protect her. Carabaos are daily stolen for food and citizens are forced to give
up their shot-guns to members of the Asedillo band which is spreading terror throughout the region, cowing even the
municipal officials.

Oct. 21 . — Aguinaldo writes the chairmen that he considers the committees of the Senate and House “without
jurisdiction to take cognizance of and decide a case on which the Philippine Legislature has already taken definite
action".

The Constabulary arrest Nicasio Layaoen for the murder of the late Representative Julio Nalundasan: action is also
promised against alleged accomplices.

Dr. Luther B. Bewley, Director of Education, returns from the United States.

Secretary of War George H. Dern, asked by reporters at Shanghai where an international conference would be
necessary to obtain a guaranty of security of the Philippines in view of the imminent establishment of the new
Commonwealth regime, replies: “There is no need to worry about that now. The American flag will fly in the
Philippines for ten more years”. He points out that the law provides for efforts to secure the neutralization of the
Philippines “if and when Philippine independence shall have been achieved”.

Oct. 22 . — The Senate and House election committees in joint session adopt a resolution dropping the Aguinaldo
charges. The Department of Justice will, however, continue an investigation.

Charges of conspiracy to commit rebellion are filed against ten Sakdal leaders including Santiago Salvador, alleged
lieutenant of Benigno Ramos, who was arrested on Monday on his arrival from Japan reportedly bearing letters
concerning a plan to overthrow the government which involved setting fire to all gasoline stations in Manila at a
given moment and kidnapping high officials.

Dern states before a Pan Pacific Association meeting in Shanghai that the United States has followed a consistent
policy in extending independence to the Philippines and that the ten-year transition period will serve to minimize the
harm done by the loss of the duty-free American market.

Oct. 23 . — New reports reach Manila of trouble in various central Luzon provinces because of the rice shortage.

The Balara filter, providing Manila with safe faucet drinking water, is officially inaugurated by the Governor-
General. The plant, costing PI, 300,000 has been in actual operation since June.

The Governor-General grants conditional pardons to twenty-seven Sakdals imprisoned for complicity in the May
uprising at Santa Rosa.

Oct. 24. — H. Nieuwenhuis, of the Royal Netherlands Indies Airline, arrives in Manila to confer with officials
regarding the proposed plan to connect the Philippines by air with the East Indies and Europe by way of the oil
harbors of East Borneo. The trip to Sourabaya could be made in a day and a half.

Quezon declares that the Coalition is necessary and that it should function in the Assembly since the members were
elected on the coalition platform. A group of majority assemblymen-elect are favoring a formal fusion as a counter
proposal as under a coalition the majority and minority would receive equal patronage. Quezon refuses to discuss
the speakership, but it is reported that Speaker Quintin Paredes has been offered the resident commissioner post in
Washington.

Secretary of Labor Ramon Torres states that landlords and hacienderos are taking advantage of the misery of the
people by usurious exactions of one cavan advanced, and blames them for the unrest in many sections of Luzon.

As a testimonial dinner in honor of former Governor -General Francis Burton Harrison, at the Manila Hotel, he says
that during his later years it has been the dream of his life to see Quezon installed as President in Malacanang. He
states that the Filipinos should have confidence in the future and declares he believes that it is secure and that they
will take their footing with the most modern and progressive nations. He pays a tribute to Murphy for the help he
has given the Philippines. Osmena in proposing a toast says: “Ladies and gentlemen: Let us raise our glass to

Governor Harrison, to lasting mutual esteem between America and the Philippines. Let us drink to the health of our
guest, that he bonds of affection and love he sought to establish may forever endure”.

Oct. 25 . — Secretary of the Interior Teofilo Sison instructs the provincial governments and provincial commanders of
the Constabulary not to allow Sakdals to hold meetings or parades, as the party has been proved to be “an organized
radical, anti-government association”.

Oct. 26. — Major-General Douglas MacArthur, until recently Chief of Staff of the U.S. Army, arrives in Manila,
shortly to assume the position of military adviser.

Oct. 27 . — Quezon gives a dinner in honor of MacArthur.

The Constabulary is reported to be collecting all revolvers and shot-guns in Cavite as a precautionary measure
except those in the hands of the police and Constabulary, and those held by Americans and foreigners who are not
suspected of any inclination to take part in an uprising.

Oct. 28 . — Quezon tells the press that he will give his utmost attention to building up an adequate military defense.
“It will demonstrate not only our earnestness for independence, but will serve notice on the world that we not only
want independence, but that we mean to keep it. He states that in consonance with the second article of the
Constitution he will institute compulsory military training.

Dern states at Hongkong that the Filipinos “have made good in all steps toward attaining independence” and that he
is sure that adjustment of Philippine-American relations can be accomplished harmoniously.

Oct. 29 . — The Governor-General issues a proclamation making November 15, the day of the inauguration, an
official holiday, as “the event is one of great importance in the history of the people of the Philippines” and the
Commonwealth government will then “enter upon its rights, privileges, powers, and duties, as provided under the
Constitution of the Philippines, thus making the beginning of a new era in the development of self-government in
the Philippines”.

Sison sends a circular letter to the provincial governments appealing for cooperation with the central government,
pointing out that the new government will be entirely a government by Filipinos and that all Filipinos should
cooperate to make it succeed as a good government. Officials are directed to inaugurate an extensive and intensive
campaign of education especially among the radical groups, especially through the holding of community
assemblies. “It is our bounden duty not only to ourselves but to posterity, to do our utmost best to prevent any
unfavorable reflection on our capacity to carry on a government based on the fundamental principles of giving
ample protection to life, liberty, and property, and to see that the United States shall not have occasion to regret that
it has given us our Commonwealth government.”

Daniel Meairan, Vice-President of Amadeo, Cavite, is shot and dangerously wounded with a home-made pistol by
Arsenio de la Rea, Sakdal leader, who is arrested. The motive for the attack is not known.

Constabulary in Pangasinan follow the Cavite example and collect all fire-arms.

It is understood that a decision has been reached at a caucus that the Speaker of the Assembly will be elected by the
majority but that he will not be Quintin Paredes. Quezon explains that the speaker will be a mere presiding officer
and that he has offered Paredes the much more important position of resident commissioner at Washington.

Oct. 30 . — Reported that Aguinaldo after a conference with officials including Osmena has agreed to desist from a
public demonstration on inauguration day although he may continue to hold his nightly meetings in his “back-yard”
in Kawit until next Saturday, when Dern arrives.

Reported that it is contemplated to establish a standing army of 19,000 men and that the police work now being done
by the Constabulary will devolve on a provost command of 3,500 men, at a total annual cost of P16,000,000 as
compared to the present constabulary appropriation of around P8,000,000. General military training will be adopted
of all able-bodied citizens, building up a potential trained man-power of 1,000,000 at the end of ten years.

Nov. 1 . — The Manila-Mindanao lone of the Iloilo-Negros Air Express Company is formally inaugurated with a flight
from Manila to Davao, via Cagayan, Oriental Misamis. A temporary agreement is also reported reached between the
Company and the Royal Netherlands Indies Airways (KNILM).

Nov. 2 . — Secretary of War George H. Dern and his party, including Brig. Gen. Creed F. Cox, Chief of the Bureau of
Insular Affairs, arrives in Manila. Dern states to the press that the plans for building up a national defense system for
the Philippines are totally independent of the War Department program and should not conflict with it. No reduction
in the Philippine Scouts force during the transition period is being considered, and a change is not likely.

Nov. 3 . — Paredes writes a letter to Quezon opposing the proposal for a coalition in the Assembly and declining the
offer of the resident commissionership.

Vicente Villamin, Filipino lawyer and economist of New York and Washington, arrives in Manila for a short visit.

Nov. 5 . — Stated that while Dern was in Japan, the Davao land situation was officially brought to his attention.

A constabulary detachment under Lieutenant Lapus from Camp Keithley kills three members of the band of the
notorious outlaw Dimakaling who has terrorized Lanao for ten years and has always succeeded in alluding the law
officers. Another member of his band was killed on October 23.

Miriam Farley, research associate of the American Council of the Institute of Pacific Relations, states that without
reciprocal tariff concessions between the United States and the Philippines, the island sugar industry is doomed. “It
is partly because of this Philippine object lesson that Hawaiian sugar interests are campaigning strenuously for the
admission of Hawaii as the 49th state, which would establish the islands irrevocably within the United States tariff
wall.

Nov. 6 . — At separate caucuses of “antis" and “pros” held in the morning and in the afternoon at Quezon’s house, the
coalition proposal is endorsed by both. The anti caucus was featured by a strong debate between Quezon and
Paredes, the latter fighting the move bitterly. Quezon declares that under a coalition he will able to select the ablest
men for key positions in the government without regard to their party affiliation.

The Governor-General approves the Pan American Airways twenty-five years franchise bill.

Nov. 7. — A joint caucus ratifies the coalition plan.

Mamerto Ponce, General Secretary of the Sakdal Party and editor of Malaya , new Sakdal publication, is arrested in
Pasig, Rizal.

Nov. 8. — Vice-President John N. Garner, Speaker Joseph W. Byrns, and seventeen senators and twenty-four
representatives arrive in Manila, also a party of prominent American newspaper men.

The American delegation goes to Baguio to visit the gold mines.

Four more of the Dimakaling bandit gang are killed when they attack a Constabulary patrol. Three Constabulary
men are wounded.

Dr. Leopoldo Faustino, Assistant Director of the Bureau of Science, dies of cancer, aged 43. Francisco Ortigas,
noted Manila lawyer and financier and a member of the Board of Regents of the University of the Philippines, dies
aboard the S.S. President Coolidge en route to the Philippines.

Nov. 9. — Paredes formally declines the speakership at a caucus, stating that he prefers to serve his constituency as a
member of the Assembly. Speaker protempore Jose C. Zulueta also renounces any claim to the office.

A Japanese news writer and member of the East Asia Economic Investigating Bureau, S. Hamano, now in Manila
warns of “serious consequences” and states that the “feelings and sentiments” of the Japanese landholders in Davao
as well as the maintenance of amicable relations between Japan and the Philippines, “Should also be taken into
consideration” in the Davao land question.

Reported that the Standard Oil Company has obtained a contract to develop a number of petroleum concession in the
Philippines on a profit-sharing basis.

At a popular banquet given in his honor, the Governor-General states that it will be his policy as United States High
Commissioner to help the country prepare itself for complete independence and to see it as far as he can that the
people have a completely democratic government. He laments the disenfranchisement of Filipino women as a
backward step.

Maj.-Gen Frank McIntyre (retired), former chief of the Bureau of Insular Affairs, and now Philippine Trade
Commissioner in Washington, arrives for the inauguration.

Nov. 10. — The British motorship Silverhazel, en route to Manila from San Francisco, runs onto a rock in San
Bernardino Strait and is completely wrecked. Efforts are continuing to rescue the passengers and crew.

November 11. — Ranking members of the two political parties in Congress now in Manila laud the stand of Quezon
in abiding by the ten-year transition period as provided in the Tydings-McDuffie Act. Aguinaldo reaffirms his stand
for a shorter period of from three to five years.

Secretary Dern and the Governor-General make a brief social call upon Aguinaldo.

The War Department rules that Quezon as President of the Commonwealth will be entitled to a nineteen-gun salute,
and the United States to a similar salute. The salute of the President of the United States is twenty-one guns.

Nov. 11. — The Governor-General is informed that President Roosevelt has approved the mining bill passed by the
Fegislature during the last session and has also accepted the gift of a site for the residence and offices for the United
States High Commissioner in Manila.

Nov. 12. — A Japanese goodwill newspaper airplane, owned by the Tokyo Nichi Nichi and the
Osaka Mainichi, arrives in Manila at 2:15 p.m. The plane left Tokyo Sunday and the last lap started about 9:00 a.m.
from Taihoku, Formosa.

The Fegislature holds a special session in honor of Garner and Byrns.

The Constabulary cancels all leave as Sakdal activity is again reported, especially in Cavite.

Nov. 13. — At a meeting in the Plaza Hotel, Manila, Aguinaldo again advocates a shortening of the transition period,
declaring that the Filipinos would be willing to undergo any sacrifices. He charges that Congress has made several
attempts to grant independence at an early period but was always opposed by Filipino political leaders. A resolution
is adopted urging the people to hold meetings in the municipalities and barrios to pass resolutions in favor of early
independence and another resolution endorses the stand of Paredes in his opposition to Quezon’s plan to reduce the

power of the speaker’s office. The allegedly high-handed methods of the government in refusing to permit
Aguinaldo’s followers to hold meetings in public is attacked.

Sakdal leaders address a memorial to Dern expressing the desire for immediate independence.

Nov. 14 . — The Governor-General addresses the Philippine Legislature in joint session on “the state of the nation”,
counseling the Filipino leaders and people to put aside personal aspects where the interest of the government in
concerned and declaring that “all officials should be humble before the majesty of the law” and that “above personal
success and personal loyalty, the good citizens and true patriot will place the supremacy of the law, duty to the state,
and devotion to the public welfare”. He praises the leaders and the Legislature, pays Spain a tribute for its
contribution to Philippine culture, speaks of the rapid progress of education, of the improvements in public works,
shipping, and aviation, stresses that economic advances made here have not been based on exploitation but that “a
good share of the profit has been passed all the way down the line, resulting in the highest labor wage in the Orient”,
and declares that the Philippines had “led during the American administration all other Oriental countries in progress
made in health and welfare”, refers to the progress made in penology “with the adoption of the most advanced
institutions in use in the United States and Europe”, states that public finance is on a sound basis but warns against
excess expenditures, and ends with the statement, “The great and happy venture of the American and Filipino people
is not yet ended. With an altered framework and broader autonomy, the Philippine government goes on under the
American flag with the full confidence and support of the people and government of the United States”.

Governor-General Frank Murphy is sworn in as United States High Commissioner at a Malacanang at 4:20,
Associate Justice George A. Malcolm administering the oath, in the presence of President-elect Manuel L. Quezon
and other high American and Filipino officials. Among the Governor-General’s last official acts are signing the local
air franchise liquors among the non-Christians in the Mountain Province.

William Allen White, noted American editor, states in a Rotary Club address that the Philippines won’t be
abandoned by America. “She will always have a kindly eye on you and all she will require is a straightforward, clear
presentation go facts, and help will be extended when it is needed”.

Fifty persons saved from the wreck of the Silverhazel reach Manila aboard two U.S. destroyers and the bodies of
Mrs. Neil Williams and B.C. MacPherson who died from exposure. The Captain, H. Lennard, and a sailor are among
the missing and are believed to have perished.

Pope Pius XI sends the Philippines his apostolic benediction.

Nov. 15. — Governor-General Murphy’s last official act is to pardon thirsty “political” prisoners, sakdals and
communists, stating to newspaper men he wants to set an example of tolerance where difference of opinion are
concerned.

With impressive ceremonies on the steps of the Legislative Building, the Commonwealth of the Philippines is
inaugurated. Following the introduction of the high personages present and an invocation by His Grace, the Most
Rev. Gabriel M. Reyes, D.D., Archbishop of Cebu, Governor -General Murphy introduces the Secretary of War who
makes a notable address on the United States policy in the Philippines, after which he requests the Governor-
General to read the proclamation of the President of the United States announcing the results of the election of the
officers of the Commonwealth. The oath of office is administered to President-elect Manuel L. Quezon by Chief
Justice Ramon Avancena and a nineteen-gun salute is fired. The oath is then administered to Vice-President Sergio
Osmena and later to the delegates -elect of the National Assembly. Thereupon, the Secretary of War on behalf of the
President of the United States declares that the Philippine Government has terminated and that the new Government
now enters upon its rights, privileges, powers, and duties, as provided under the Constitution of the Philippines.
President Quezon delivers an address outlining the policies he will follow. After a civil and military parade.
President Quezon goes to Malacanang and High Commissioner Murphy goes to the Manila Hotel, both with Cavalry
escorts, the latter later returning to Malacanang as a guest of President Quezon who will not immediately occupy the
palace.

President Quezon issues an executive order directing Philippine officials to take their oaths of office as early as
practicable and prescribing the form, and calls a special session of the National Assembly for November 22.

The Japanese Foreign Minister sends his congratulations to President Quezon through the President of the United
States, wishing the new government a happy and prosperous future and expressing the hope that it will “contribute
to the promotion of peace in East Asia”. Foreign Secretary Sir Samuel Hoare also addresses a message of goodwill
to President Quezon through the United States Government.

Nov. 16 . — President Quezon names Vice-President Osmena acting Secretary of Public Instruction, vice former Vice-
Governor J.R. Hayden, who leaves for the United States shortly. Chief Justice Ramon Avancena is reappointed to
the presidency of the Supreme Court. Jaime Hernandez, Deputy Insular Auditor, is named Auditor-General. Under-
secretary Jorge B. Vargas is appointed Secretary to the President.

President Quezon appoints Maj.-Gen. Douglas Mac Arthur military adviser to the Commonwealth and creates a
Board of National Defense with himself as Chairman and Osmena as vice-chairman and with the following
membership: all the members of the Cabinet, Assemblymen Francisco Enage and Daniel Maramba, Brig. -Gen.
Basilio Valdes, Provincial Governors Hermenegildo Villanueva and Juan Cailles, the revolutionary Generals Jose
Alejandrino and Teodoro Sandiko, and Lieut. -Col. Paulino Santos, Secretary.

Lieut. -Col. Abraham Garfinkle, U.S. Army formerly Aide to the Governor-General, has been designated Aide to the
President of the Commonwealth, assisted by Maj. Arsenio Natividad (P.C.).

C. W. Franks, Secretary to the Governor-General, has been designated Chief of the Statistics Division in the High
Commissioner’s office; Richard T. Ely Assistant Secretary to the High Commissioner and chief clerk and passport
clerk; Norman Hill Assistant Administrative Officers; Miss Baumgartner Assistant Secretary. Most of the rest of the
Malacanang personnel except a number of clerks who join the High Commissioner’s office, are retained by
President Quezon. As already announced, J. Weldon Jones and E.D. Hester have been appointed Financial Adviser
and Assistant Financial Adviser respectively, and E.W. Kemp, legal adviser.

Dern leaves Manila on the U.S. S. Chester for the United States via Iloilo, Cebu, Zamboanga, and Davao.

Mr. Wirjopranato, delegate of a Javanese political party, recently arrived in the Philippines, receives a radio wishing
the Philippine people success from Mr. Thamrin, Party chairman.

Former Sen. Harry B. Hawes, on the occasion of the presentation of an oil portrait of the late Sen. Bronson Cutting
at Malacanang, tells his audience that he has been “informed on the very highest authority in the United States” that
the ten-year transition period will not be changed. He declares that Senator Cutting and himself “believed that the
transition period should have been fifteen years and that the plebiscite should have been placed at the end of this
period and not at the beginning, and that neither of them thought that any tariff should be levied prior to the end of
the ten-year period, but that sometimes comprises have to be made in order to secure the passage of a bill. . .. Senator
Cutting and I both knew that the Filipino people could not live with only five years within which to work out their
world-wide destiny. We knew that because a straight -jacket had been placed both upon the exports and imports of
your Islands by our Congress. World trade can not be secured in five years”. He closes with expressions of optimism
in the future and emphasizes the continued interest of America in the welfare of the Philippines. The portrait is
accepted on behalf of the Philippines by Vice-President Osmena.

Nov. 18 . — President Quezon reappoints all the members of the Cabinet and of the Supreme court except the
American associate justices, stating he regrets that the Americans are not qualified under the provisions of the
Constitution.

At a popular banquet. Sen. Joseph T. Robinson, majority floor leader, states that only Congress with the approval or
over the veto of the President can fix government policies and that “your guests, however sympathetic to your
wishes or demands, have no power to pledge that changes in the Tydings-McDuffy Act will be made. We do not,
can not promise modifications in the tariff or changes in the time limit You may be assured, however, that kindly

and friendly hearing will be accorded any subject fairly presented.” He emphasizes that the “cause of independence
has progressed to a point where there is little likelihood of turning back.... The period of preparation and
organization has been fixed at ten years which constitutes a compromise between those who advocated longer and

shorter terms Independence will require economic readjustments. There will come vexing difficulties and

discouraging disappointments. You need not expect to lie in flowery beds of ease”.

Nov. 19 . — In a conference between Rep. Bertrand Snell and Aguinaldo, the former advises that Aguinaldo cooperate
with Quezon.

Dimakaling, notorious Lanao bandit who for ten years has evaded capture, is shot and killed by Constabulary
detachment under Lieut. Benito Capayas.

The governments of France and Germany send congratulatory messages to President Quezon through the State
Department.

Nov. 20 . — Garner and Byrns and other members of the congressional delegations depart for the United States.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1935). History from day to day : The Philippines. Philippine Magazine, 38(1), 4. Retrieved
fromhttps://archive.org/stream/acd5869. 0038. 001. umich.edu#page/n5/mode/2up.

News Summary, Philippine Magazine: November 18 — December 13, 1935

News Summary
The Philippines

Nov. 18 . — The National Congress of Filipino business men opens in Manila.

Nov. 20 . — Faculty members and officials of the University of the Philippines take the required oath swearing
allegiance to the United States and to defend the Constitution of the Commonwealth of the Philippines.

Nov. 21 . — President Manuel L. Quezon issues a proclamation postponing the special session of the National
Assembly from November 22 to November 25, and limiting the session to 15 days.

Dining an all-day caucus presided over by President Quezon, and after prolonged debate, the majority party votes in
favor of a fusion with the minority.

An 80-page bill on national defense is filed, also a bill on standardization of government positions, and a census bill.

Dr. Carl W. Ackerman, Dean of the Graduate School of Journalism of the Columbia University, and a member of
the group of journalists who attended the Commonwealth Inauguration, speaking before the University of the
Philippines College of Law, states: “Every Filipino citizen who believes in the ‘Bill of Rights’ in the Constitution,
should support the press of the Commonwealth because free and independent newspapers are the first line of defense
against a dictatorship at home as well as against foreign economic or political servitude”.

President Quezon opens Malacanang Palace to the public on Sundays, beginning December 1, from 9:30 to 11:30 A.
M., and the grounds from 8:00 A. M. to 5:00 P. M., following the White House practice.

Nov. 22 . — President Quezon designates Under-Secretary of Finance Vicente Carmona as financial adviser, and
names Dr. Victor Buencamino, of the Bureau of Animal Husbandry, acting Under-Secretary of Agriculture and
Commerce while Under-Secretary Jorge Vargas is on detail as Secretary to the President. Director Jose Gil of the
Bureau of Civil Service is appointed Assistant Secretary to the President. Both Secretary Carmona and Director Gil
will continue their regular duties.

Nov. 23 . — The minority party directorate and leaders, headed by Vice-President Sergio Osmena, approves the
proposed fusion of the “antis” and “pros”.

At a joint majority and minority caucus. Assemblyman Gil Nontilla of Occidental Negros is designated to be elected
as Speaker of the National Assembly.

The National Congress of Filipino Businessmen closes a five-day session during which government officials and
prominent business men addressed the organization and resolutions were adopted pledging support to President
Quezon; favoring government simplification, creation of a national economic council and an economic planning
commission, a central bank, an agricultural bank, and cooperative marketing organizations, a tariff commission, a
national credit bureau; expressing adherence to the national defense plan, etc., etc.

Nov. 24 . — Associate Justice George C. Butte, former Vice-Governor, marries Dna Angela, Vda. de Papa, the
ceremony being performed at the residence of the Apostolic Delegate.

Nov. 25 . — The National Assembly opens its inaugural session with Quintin Paredes, Speaker of the former House of
Representatives in the chair. Assemblyman Gil Montilla is duly elected Speaker, Francisco Enage (Leyte) floor
leader, Narciso Pimentel, secretary, and Narciso Diokno sergeant-at-arms. A stormy discussion follows a resolution
offered by Enage providing for the immediate organization of the Commission on Appointments — to which he
recommended Assemblymen Ruperto Montinola, Eusebio Orense, Miguel Cueneo, Juan S. Alano, and Agaton

Yaranon — and the motion is voted down. Some of the rules governing the former Legislature are temporarily
adopted. As President Quezon mounts the rostrom, before his address, he hands Speaker Montilla a gavel which he
states was a gift from Vice-President John N. Garner which he has been asked to deliver to the Speaker of the new
Assembly. Addressing the Assembly, he speaks almost exclusively of his plans for national defense and asks that
full powers he conferred on him to carry them out, closing his address with the statement: “What would be the use
of seeing our country free one day, with its own flag standing alone and flying against the sky, only to see ourselves
the subjects of another power the following day, with its flag sovereign in our country? What would be the purpose
of educating our young men and women concerning their rights and privileges as free citizens, if tomorrow they are
to be subjects of a foreign foe? Why build up the wealth of the nation only to swell the coffers of another? If that is
to be our preordained fate, why seek a new master when the Stars and Stripes has given us not only justice and fair
treatment, welfare and prosperity, but also ever-increasing liberties, including independence? National freedom now
stands before us as a shining light — the freedom that for many years gleamed only as a fitful candle in the distant
dark. We shall make ourselves ready to grasp the torch, so that no predatory force may ever strike it from our
hands.”

J. R. Hayden, last American Vice-Governor, leaves for the United States via Siberia and Russia, Mrs. Hayden and
their children having left yesterday direct for Paris where they will meet and continue on to the United States
together.

Nov. 26 . — The Assembly unanimously adopts a resolution expressing support of President Quezon’s defense plans.

President Quezon issues a Thanksgiving Day proclamation enjoining the people to offer thanks to God and making
special mention of “the establishment of the Commonwealth based upon the free will and suffrage of the Filipino
people”.

Nov. 27 . — President Quezon makes a surprise visit to the zone of Constabulary operations against a number of
notorious bandits in Laguna province.

Nov. 29 . — The China Clipper of the Pan-American Airways Company arrives in Manila on the first airmail flight
from San Francisco, over 8,600 miles of ocean, the total flying time being 5 hours, 47 minutes although the trip took
slightly less than seven days. Aided by tail-winds, the hop from Guam was made in 1 1 hours, 22 minutes, but speed
was slowed down as it was not desired to arrive too far ahead of schedule. The plane brings 1400 pounds of air mail,
including a letter from President Franklin D. Roosevelt to President Quezon. Over a hundred thousand cheering
people lining bay-front, see the plane come in and the flyers are welcomed by Vice-President Osmena, Mayor Juan
Posadas, and high Army and Navy officers, and Secretary of Public Works and Communications Antonio de las
Alas delivers an address of welcome, to which Captain Edwin C. Musick responds: “Today’s flight is not the result
of a simple process. Five years of ceaseless planning, designing and construction, training and practice have
advanced aviation to this point where today it is possible for us to span an ocean where heretofore air transport
service has only crossed narrow channels. The rich reward of sweeping away that age-old barrier of distance
between the new world and the old, between the East and the West, has been the inspiration through which this great
achievement has been made. It is the sincere hope of the Pan-American Airways System that this air service
inaugurated today, may bring rich benefits to the Commonwealth of the Philippines, to the countries of the Orient, in
the peace, prosperity, and continued progress that is the hope of the American people”. After the ceremonies at the
Admiral’s landing, the airmen are received by President Quezon at Malacanang.

The Primaguet. flagship of the French Asiatic Fleet, arrives in Manila for a visit.

Six bandits are reported to have been killed in an encounter between the Constabulary and the Encallado band near
Sampaloc, Tayabas, and 30 outlaws have surrendered. A few days ago, 14 surrendered, bringing the total up to 52.

Nov. 30 . — President Quezon issues a proclamation lifting the tariff on rice as a relief measure, covering the
importation of rice “heretofore made or hereafter made by or for the account of the government for distribution
among distressed people”.

President Quezon sails from Manila on the cutter A rayat for an unannounced destination. Secretary of Justice Jose
Yulu, Roy Howard, American publisher, and a few others accompanying him.

Dec. 2 . — The national defense bill is submitted to the Assembly, President Quezon asking P3,459,741 this year for
the purchase of equipment and the construction of barracks. The total outlay would amount to P15,996,531, which
would include the usual P8,000,000 appropriation for the Constabulary.

Former Governor-General Francis Burton Harrison is named technical adviser to President Quezon on transportation
and communication problems.

Dec. 3 . — President Quezon arrives unexpectedly at Zamboanga and after a brief inspection proceeds to Isabela,
Basilan to visit the American Rubber Company plantation.

Dr. Frank Warring and Dr. Ben Dorfman, American tariff experts now in the Philippines, state that it is premature to
say that Japan has violated its textile quota and explain that there was an understanding that transhipments from
Hongkong and other points will be included in the quota as they always have been in Philippine statistics of
Japanese cotton good imports.

The mother of Maj.-Gen. Douglas MacArthur, who accompanied him to the Philippines, dies in Manila, aged 82.
Dec. 4 . — President Quezon visits Cebu on his way back to Manila.

Dec. 5 . — Reported that a local Japanese firm has imported machinery for making cotton underwear in Manila.

Dean Francisco Benitez of the College of Education, University of the Philippines, is designated adviser to Vice-
President Osmena on educational matters.

Dec. 7. — President Quezon directs Secretary of Agriculture and Commerce Eulogio Rodriguez to investigate
Director Cornelio Balmaceda, of the Bureau of Commerce, in connection with the admission of excess shipments of
Saigon rice and in the mean time to suspend him. Director Balmaceda is charged with negligence in signing
affidavits directing the admission of rice much in excess of the quantities authorized in the contracts of Florencio
Reyes, rice dealer, with the government.

Dec. 8 . — General Emilio Aguinaldo issues a statement criticizing the national defense plan, stating that the
Philippines should rely first on American protection and later on "the spirit of international justice which I hope will
continue to exist”. He states the country can not afford the appropriations asked for for a “useless pretense”, and that
to preserve internal peace it is only necessary to “stop hunger”. He however expresses himself in favor of military
instruction in all schools.

Dec. 9 . — President Quezon submits two bills to the Assembly in connection with the redemption of certain Manila
Railroad bonds, the paying of which now instead of in 1939 when they come due at a 20% discount, as offered by
the British bondholders, would mean a large saving to the government.

Ernest Shaffner, Division Superintendent of Schools of Occidental Negros, dies as a result of an automobile
accident.

Dec. 10 . — President Quezon appoints Judge Sabino Padilla of the Court of First Instance of Nueva Ecija, special
investigator of the charge against Director Balmaceda.

Dec. 11 . — President Quezon issues a proclamation extending the special session of the Assembly to December 20.

Gen. Emilio Aguinaldo cables the National Dairy Union of the United States declaring that the Filipinos “rejoice
that you will push Congress to adopt a new proposal to grant immediate independence; we will strongly support
your stand with gratitude”.

Maj. Gen. Frank Parker, Commanding General, Philippine Department, sails for the United States to take command
of the First Division, with headquarters at Fort Hamilton, New Jersey.

Manila and United States newspapers simultaneously publish a notable article by Roy W. Howard, declaring that the
dream of Philippine independence is already fading in the minds of thinking Filipinos because of fear of Japan and
predicting that they will seek permanent dominion status under the American flag, and may turn to Great Britain for
protection if America remains indifferent. The article arouses wide interest, and the following comments are
reported in the press during the ensuing few days:

President Quezon’s formal statement: “Mr. Howard is known to be one of the most independent newspaper
publishers in the world, and his opinions are his. All I can say is that as President of the Philippines I have taken the
oath to uphold and defend the Constitution of the Philippines, and that Constitution provides not only for the
establishment of the Commonwealth but also for the establishment of the Philippine Republic on the 4th of July
after the tenth year following the inauguration of the Commonwealth. To insure the safety of the Philippine
Republic I have considered it my first and most urgent duty to recommend to the National Assembly at its inaugural
session the enactment of a law which provides for the national defense of the Philippines in accordance with the
program prepared and submitted to me by the best expert advice that can be had. The immediate response of the
National Assembly in endorsing by a unanimous vote the sentiments and purposes expressed in my message to that
body, puts the Assembly on record as ready to do its part in carrying out the objective of the Independence Law. We
can do no more to show the earnestness of our purpose to become an independent nation. Mr. Howard says that
certain factors are adverse to independence and loom large in the present international picture. If he is correct, these
may fade out even more suddenly than they appeared. In any event, our task as a Nation is clear — to make ourselves
reasonably self-dependent and self-sufficient in every respect as soon as possible”. Speaker Montilla states that the
Howard article represents purely Howard’s own opinion and that he knows of no change of front on the part of the
Filipino people. Assemblyman Vicente Rama states that the article will promote a better understanding of the real
problems of our government. Assemblyman Buenaventura Rodriguez states that the Filipinos should be given a
respite and allowed to develop their own policies, and that attempts to “scare” them should be discouraged.
Assemblyman Camilo Osias states that after having been granted the present Independence Law, the Filipinos will
not allow themselves to be “bamboozled” into such action as suggested by Howard. Assemblyman Tomas Confesor
says that the article casts serious reflection upon the patriotism and integrity of the Filipinos. “Is there a conspiracy?
If so, who are the conspirators?” Former Resident Commissioner Pedro Guevara states that the article is in line with
his own view in favor of an American protectorate. Former Resident Commissioner Francisco Delgado states that
the article, by a prominent American and a sincere friend of the Filipinos, furnishes a starting point for discussion.
“If a change of front has really taken place among our people, the sooner the matter is brought to the forefront the
better. No change in the political status of the country as laid down in the Tydings -McDuffie Act will ever be made
by the American people without the consent or perhaps even the initiative of the Filipinos”. Rafael Palma states that
while it is undeniable that there are a few Filipinos who desire the continuation of a commonwealth form of
government indefinitely, the majority of the people are decidedly In favor of independence. General Emilio
Aguinaldo states that it is not true that the people are afraid of Japan someday taking the Philippines or that they
want to perpetuate the present form of government; instead they want to shorten the transition period to
independence. Former Representative Nicanor Carag states that although Howard’s views are not pleasant to hear,
he speaks a great deal of truth. Vicente Sotto states that the assertion that there has been a change in the Filipino
attitude is false and that it is inspired by “certain American business men interested in the continuation of free trade
with America and in holding their monopoly of the Philippine market”. Miguel Unson states this is not the time to
make the people doubt and hesitate. “It is a question that the people should decide for themselves, but the issue
should not have been brought up at the present time”. Filipino business men approached for their opinions generally
refuse to express them, but one is reported to have stated that the “Filipinos must soon decide whether they want to
remain with America or be taken by Japan. We have been building up an Occidental civilization here for centimes. .

. we are Westernized to a great extent. If the American market is closed to us, we will have to change our ways of
living to conform to those of the Japanese and Chinese. We can not otherwise survive Oriental competition.”

Secretary of War George H. Dern states in San Francisco that he has confidence in the Commonwealth Government
and that he sees no reason why absolute independence should not be granted at the end of the ten-year transition
period. War Department officials state that permanent affiliation of the Philippines with the United States would
require an act of Congress. State Department officials declare that the wide-spread comment aroused by the article
indicates that there would be serious political opposition to any broad revision of the Tydings -McDuffie Act and that
they feel the Filipinos’ best approach would be through a step-by-step method in conformity with circumstances as
they arise; the quota provisions would be the first logical point of attack. Senator M. E. Tydings: “I doubt that
Congress and the American people would favor permanent continuation of the present status. . . . Last winter I
purposely went to the Philippines. . . I warned them. . . . After all this and in the face of repeated admonitions, it
strikes me that the United States would be reluctant to change what seems to be the definite policy of this country
and the Philippines to establish complete independence. On the whole 1 think Howard’s observations are accurate,
however.” Senator K. McKellar: “1 do not favor a permanent Commonwealth unless the United States controls
Philippine foreign relations, army and navy, air, tariff, immigration, and issuance of bonds. After visiting the Islands
I felt sure that an independent government would be incapable of defending itself. . . It appears to me better to move
out altogether.” Senator Key Pittman expresses doubts that Philippine business men would seek a British
protectorate if the United States is disinterested. “We retain sovereignty for ten years, although the government is
autonomous similar to a state government. . . . We will take care of the Philippines ourselves”. Senator William
Borah: “I will oppose any fundamental change in the Tydings -McDuffie Law”. W. Cameron Forbes: “The
Philippines got what they wanted. The next move is up to them”. General James G. Harbord (ret.) Howard gives an
“excellent and true picture of the situation”. Raymond L. Buell: “I am opposed to keeping the United States in Asia.

. . . If the United States is responsible for protecting the Islands from Japan, we should retain control over the
administration, which is exactly what Filipino politicians do not want”. Nicholas Roosevelt: “We should shorten the
transition period. The United States should retain no responsibility of any sort, and no naval bases. I should refuse to
guarantee either Philippine independence or Philippine neutrality. If the Philippine Republic should find a protector
in either Britain or Japan, that should be no concern to America. America is through with them. They have made
their bed, now let them lie in it”. A National Grange official states that the Filipinos have accepted the independence
act and that the Grange will oppose any movement to change the policy laid down. Chester Gray of the Farm Bureau
Federation states that the idea of a British protectorate is “a good one”. Philip Simms, foreign editor of the Scripps-
Howard Newspaper Alliance: “To become a complete self-governing unit, in my judgment, would result only in
economic ruin and political disaster. With certain amendments, I would leave the Constitution as it stands, the
country to remain a Commonwealth with its own President and a High Commissioner to represent the United States.
But the United States can not make itself responsible unless it has the power; in other words, it must stay with full
sovereignty or get out entirely”. The New York Herald-Tribune: “Either the Philippines must ask to retain
permanently the American flag, submitting fundamental law on foreign affairs and public finances to American
control, or the process of severance must be continued to the appointed end — the sooner the better. . . . The only
alternative — it is still open — would be. . . the Islands accepting the reality of freedom under the American flag in
place of the pitiful nonsense of nominal independence that will only last until Japan is ready to act”. The New York
World-Telegram: “The United States first counted on treaty safeguards to protect eventual independence, but so was
the political and territorial integrity of China guaranteed by powerful members of the family of nations — and see
what is happening there.”

The Howard statement also attracts wide attention in China. T. V. Soong, China’s outstanding financier and former
Minister of Finance, states: “I consider Howard’s an eminently realistic appraisal of the situation. Americans both in
spirit and letter honored the promise of independence. But as a Chinese I well sympathize with the fears of Filipino
statesmen that without American protection the Islands will immediately become the prey of outside aggression. On
the other hand, one fails to see how America could or would refuse a request for continuing protection if made by
the genuine wishes of the Filipinos. An Oriental proverb says that whoever saves another’s life, assumes thereby
great responsibilities. And it may well be, even in the interest of the security of the continental United States, that
the outposts lightly given up now, may prove costly mistakes in the future, as it is inconceivable, despite present
appearances, that the United States will ever abandon its destiny as a major factor in the Pacific”. Chinese and others
interviewed in Shanghai are unanimously gratified at what they consider a sign pointing to a reversal of recent
American indifference to the Far East. North China Daily News: “It is inconceivable that Britain would assent to any
request to grant the Filipinos a territorial status under the British flag. The Philippines have nothing which can not
be obtained in existing British colonies, and there would be nothing available to compensate Britain for the
responsibilities which she would have to adopt”. The Tokyo Yomiura declares that Howard’s statement that the

Philippines may turn to Britain for assistance in the event America is uninterested in retaining the Islands, is
“astonishingly irresponsible”.

Dec. 12 . — President Quezon sends a message to the Assembly recommending appropriate legislation for the creation
of a non-political Government Survey Board to make recommendations for the reorganization of the government in
the interest of efficiency and economy, asking also that the President be given authority during a period of six
months in the mean time to make the most necessary changes so as not to delay reform.

Hao-Chu Lee, new Chinese Consul-General, arrives in Manila to relieve Consul-General T. I. Dunn.

Howard and his family leaves the Philippines to return to the United States via Java and Europe, issuing a statement
congratulating the Filipino people on the manner they received his article and stating that most of his critics attacked
arguments which they themselves and not he made. “The one and only question, so far as I can see, is whether the
intellectual leadership of the Filipinos believes it possible for any nation of approximately 15,000,000 people, of any
race, and of any standard of courage, intelligence, and strength, to exist as an independent republic in this particular
geographical locality at this particular time in history. My observation is that the majority — the vast majority — of
the informed opinion in the Islands today is that such a republic could not exist. Furthermore, it is my opinion that
the situation will never change unless there comes into being a revised League of Nations or a similar force for
order, which through the power of economic sanctions, is able to guarantee to small and independent nations,
security equal to that guaranteed the strongest.”

Dec. 13 . — President Quezon sends a message to the Assembly together with a proposed bill to create an intermediate
court of appeals in order to lighten the burden of work now carried by the Supreme Court and more properly
belonging to other courts. The proposal to establish such a court is several years old and a similar bill was signed by
the Governor-General in 1930 but was not acted upon by Congress which at the time had to ratify such a measure.

Source: University of Michigan

Hartendorp, A. V. H. (Ed.). (1936). News Summary : The Philippines. Philippine Magazine, 33(1), 4-6. Retrieved
from https://archive.Org/stream/acd5869.0038.001.umich.edu#page/n5/mode/2up .

President’s Month in Review: February, 1936

News Summary, Philippine Magazine: March 12 - April 17, 1936

News Summary
The Philippines

March 12 . — A movement is reported among assemblymen to increase powers of the Speaker and also to obstruct the
plan of the Department of Justice to convert justice of the peace courts into circuit courts; members of the Assembly
Commission on Appointments state they will sanction no appointments of justices of the peace unless made in
consultation with the assemblymen of the districts where such judges are to be assigned.

President Manuel Quezon authorizes release of P97 1,593 of the motor vehicle fund for the repair of roads and
bridges and special projects. Albay is allotted no share and the Under-Secretary of Public Works and
Communications states the matter pends until the controversy over the cedula reduction m the province is settled to
the satisfaction of the administration.

Lanao Moros are reported to oppose registration for military training on grounds that they are always ready to fight
and if they are only given arms they will be ready for any war.

March 13 . — The Provincial Board of Albay adopts resolution annulling the cedula-slash resolution of last
December.

March 16 . — President Quezon holds a conference with Assemblyman Justino Nuyda, chairman of the Pension
Committee, concerning a general pension system for all government classified employees and officials, taking the
place of the present teachers, health service, and constabulary pension funds. A subcommittee composed of
Assemblyman Camilo Osias, Eusebio Orense, and Regino Veridiano are studying different pension laws now in
force.

In a letter to Assemblyman Jose E. Romero, President Quezon states that the Constitution requires not the “advice”
but only the “confirmation of the Commission on Appointments and that while he will give the views of the
members of the Assembly such consideration as in his judgment they deserve in the appointment of justices of the
peace, the responsibility for all appointments is his. “The Commission on Appointments has the right to reject my
appointments. When the time comes for the Commission to perform its duty, I feel confident it will perform it in the
same manner and spirit as I propose to perform mine.” He states the Constitutional Convention wanted the chief
executive to be free from political influences in making appointments, especially to the judiciary.

President Quezon accepts the resignation of Judge Luis P. Torres, Public Service Commissioner, with regret. He
also approves the retirement of Judge Quirico Abeto of the court of first instance.

President Quezon appoints Judge Emilio Mapa, Fiscal Jose R. Carlos, and Director Simeon Ramos to fill vacancies
in the courts of first instance. The appointment of Ramos leaves the directorship of the Bureau of Lands open.

March 17 . — In view of the fact that “reports have been received of the insolvent condition of the several pension
systems of the government. President Quezon creates a Committee on Pensions composed of Salvador Lagdameo,
Chairman, and Antonio Ramos, Celedonio Salvador, Dr. Leoncio Lopez Rizal, Major Hipolito Garma, Dr. Emeteno
Roa, and Dr. Luis R. Salvosa, to make “a survey of existing retirement, gratuity, and pension systems, and to study
the advisability of continuing, modifying, amending, or abolishing any or all of the several pensions systems with
due respect to the establishing rights of the beneficiaries, or to recommend the adoption of a general retirement plan
to cover the entire public service.”

Reported that National Development will organize a P4,000,000 rice corporation by direction of President Quezon.

President Quezon, accompanied by Secretary of Interior, Elpidio Quirino, leaves Manila for a week s trip to Iloilo,
Zamboanga, and Cotabato.

Dy Buncio, prominent Manila Chinese business man, dies.

Former Justice Thomas A. Street dies in Montgomery, Alabama, aged 64.

March 19 . — President Quezon instructs Resident Commissioner Quintin Paredes to take over the office of Brig.
Gen. Frank MacIntyre as Philippine Trade Commissioner in Washington.

President Quezon and Quirino probe into charges against Governor Felipe Ramos of Zamboanga.

University of the Philippines authorities cancel the scheduled lecture in the auditorium of the School of Hygiene and
Public Health of Dr. Edith How-Martyn, Director of the International Birth Control Bureau of Fondon, and the
meeting is held in the home of the Rev. Samuel Stagg. Dean Calderon canceled the previously granted permit “so as
not to bring added worry to President Jorge Bocobo m view of Catholic protests. Dr. How-Martyn said that modern
birth control devices are something more civilized and humane than such natural checks as famine, pestilence, war,
and infanticide.

March 20 . — At a meeting of Philippine Amateur Athletic Federation, Dr. Regino R. Ylanan, National Physical
Director, is named head coach and Philippine delegate to the Berlin World Olympics. Dionisio Calvo (Fa Salle) is
designated coach of the basketball team; Serafin Aquino (Bureau of Education) track and field squad coach. Prof.
Candido Bartolome, (U. P.) coach of the swimming team. Athletes will number: track and field, 6 to 8; basketball
10; swimming, 4 to 6; boxing, 3 to 5; wrestling and weight lifting, 1 to 2; and a rifle and shooting team may also be
sent.

President Quezon cables Paredes to do his best to support the Dockweiler bill and also asks help from the War
Department through High Commissioner Frank Murphy.

After a personal investigation, Quezon orders the reinstatement of Governor Dionisio Gutierrez of Cotabato. In a
talk to the people he promised them roads and other developments and asked for peace and goodwill. He states he
will do everything to protect the people and their rights, but warned that whoever defied the government would do
so at his own risk.

March 23 . — The Democratic Territorial Committee meets at the Manila Hotel and elects High Commissioner
Murphy, Philippine delegate to attend the Democratic National Convention in Philadelphia on June 23. A resolution
is adopted urging his retention here. Others elected to the delegation are Maj. W. H. Anderson, P. J. Walowit, H. van
Winkle, C. M. Hoskins, and D. G. McVean. Alternates elected are F. Hargis, E. G. Kemp, Mrs. Z. Anderson and F.
Theo Rogers. Those elected to the Territorial Central Committee are Maj. W. H. Anderson, A. S. Heyward, C. M.
Hoskins, J. F. Headington, M. Ford, C. D. Johnston, J. Dumas, B. H. Berkenkotter, and Harold Van Winkle. A
resolution supporting the “New Deal" was carried with but one dissenting vote.

Resolutions adopted declare that “while the work of reconstruction is not yet complete, and although many
emergency measures which were necessary to avoid complete disaster have now been discarded, the Democratic
Party can well be proud of its record during the past three years. Not only has the administration averted the course
which the nation was taking towards economic and social chaos. It has brought about such a substantial recovery
that many are already forgetting the depths of depression in which the nation was wallowing only three years ago. In
the year 1934, the Congress enacted and the President approved the Tydings-McDuffie law, establishing the
Philippine Commonwealth as the last steps prior to Philippine independence. The American people have thus
honorably fulfilled their promise, and for the first time in history, a subject nation will soon attain its freedom by
peaceful means. As Americans we are proud of our country for thus redeeming their promises, and for the assurance
given by the leaders of the present administration that generous consideration will be given the Philippine
Commonwealth should the economic provisions of the Tydings -McDuffie law prove unduly harmful to the stability
of this new Commonwealth. We urge that these assurances be reiterated in the. platform of the Democratic Party.

The same principle of reciprocal benefits which has characterized recent American trade agreements with foreign
countries should inevitably apply to the Philippine Commonwealth whilst it remains a dependency and under the
complete sovereignty of the United States. The Philippine economic structure has been built during thirty-eight
years upon a design dictated by the United States government. This structure should not be ruthlessly demolished in
the expectation that another, of entirely new design, can be erected in the short term of ten years. In November the
Democratic Party submits its record for the judgment of the American people. . . . We feel confident that the
American people will not be swerved from the present course which has led them from misery to freedom, which
has reestablished the primacy of human rights, which has saved the nation from disintegrations, and which is even
now leading to a new era of national prosperity and well-being.”

March 24. — President Quezon returns to Manila. He appoints Dr. Manuel L. Roxas, member of National Economic
Council.

Vicente Madrigal is elected president of Chamber of Commerce of the Philippines.

March 25. — President Quezon leaves Manila again for a trip to Masbate.

March 26. — The China Clipper arrives in Manila with a new motor for the Philippine Clipper which has been laid
up in Manila.

Paredes in address before a Washington Club states that the Tydings-McDuffie act “works against an economic
development gradually and consistently acquired” and that the restrictions on sugar, cordage, and coconut oil
imports into the United States, while the Philippines is prohibited from controlling its own tariff policy, threatens
“the destruction of the American’s great handiwork in that part of the world. Let’s be frank and admit that American
and Filipino alike are affected by the realities.”

March 27. — The directors of the Philippine Carnival Association decide to absorb the functions of the defunct
Philippine Tourist Association and to take charge of a campaign of Philippine commercial publicity locally and
abroad in line with a plan suggested by President Quezon.

March 28. — The University of Santo Tomas confers an honorary LL.D. on President Quezon.

March 30. — Datu Mamarinta, Lanao cattle-rustler, and eight of his followers including three women are killed when
the Constabulary take his cota at Saguiaran.

Floor leader Jose Romero writes a letter in reply to Mr. Quezon’s of March 16, stating that the views expressed there
were unanimously approved at a caucus and that the Assembly has no intention of meddling with the judiciary.
“However, since the assemblymen in many cases have first hand information on nominees and are bound ultimately
to be heard on the question, it would seem to be best for all concerned that their objections, should there be any, be
considered before the nominations are made, and not after.”

President Quezon names as members of the Central Review Board of the Army, Judge Antonio Horilleno, Colonel
Antonio Torres, Dr. Herminio Velarde, Judge Teofisto Guingona, Capt. Jose E. Guido.

President Quezon appoints Rafael Alunan and Vicente Singson Encarnacion to the National Economic Council.

Erlanger & Galinger, Inc. announces that all those in its employ who will undergo military training will have the
option to return to their jobs after the period of training is ended and will be paid 50% of their salary during the
period.

The Bacolod-Murcia Sugar Central, it is reported, has paid the last of its P10,000,000 debt of fifteen years standing
to the Philippine National Bank, the third central to do so, following the Pampanga Sugar Development Company

and the Talisay-Silay Sugar Central. The Ma-ao, Isabela, and Binalbagan centrals still owe the Bank a total of
P4.000.000.

At a joint meeting of the Rice Commission and the National Economic Council after a long meeting at Malacanang
the latter approves the “creation of an entity to put into effect whatever plans may be definitely decided hereafter”
but is “not in accord with the recommendations of the Commission”. President Quezon first addressed the members
of the two bodies, thanking them for their willingness to serve the country at a sacrifice of their valuable time and
without pay. He declares that the creation of the Council formally committed the government to a definite economic
policy — of government leadership and government planning in the national economy. “We don’t believe in the
economic philosophy of iaissez faire’.” “The framers of our Constitution, seeing that the efforts of other
governments to regulate the play of economic forces and when necessary to take part in the industrial development
of the nation — all in the interest of, and for the promotion of the public weal — have been thwarted by constitutional
limitations intended for an age and an economic order long out of existence, saw to it that the Constitution left no
doubt as to what the government might do in this respect. Every member of this Council is free to express his
opinion honestly frankly. Your counsel and advice would be of little or no value to the government unless you felt
that you are here not to follow blindly the dictates of anyone, but to contribute with your knowledge and experience
on public affairs and private business to the solution of the grave economic and social questions confronting the
nation. There is only one limitation to your freedom of opinion. Anyone who believes in good faith, as a matter of
principle in the economic philosophy of iaissez faire’, or in the inherent unfitness of government to own and
operate an industry or any business enterprise, has no place in a council created by law and under a constitution that
professes an entirely opposite theory. I have appointed you to this Council because 1 have faith in your patriotism, in
your ability and experience. I trust that with your counsel and advise this government will be able to promote the
development of our natural resources and direct and partake in the economic advancement in a manner that will
insure the progress, the welfare, prosperity and happiness of all the people — the rich and the poor.”

March 31 . — High Commissioner Murphy and Dr. Gregorio Singian receive honorary degrees at University of the
Philippines commencement, and Assemblyman Manuel A. Roxas delivers commencement address warning of the
dangers to which an independent Philippines will be exposed and advocating preparedness.

President Quezon again leaves Manila on tour of inspection in the Bicol provinces, the Visayas, and Mindanao.

The report of the Manila Railroad Company submitted at the annual meeting shows a loss of PI, 838,285. 88 for the
year. Manager Jose Paez attributes the loss to decreased traffic, due to limited sugar production, increased highway
competition by buses and trucks, extensive damage caused by storms and floods, and increased fixed charges on the
bond issue.

April 1. — Twenty-year old men begin registration for military training. The period closes on April 7 at 8 o’clock p.
m.

Dr. Luther B. Bewley states that Teachers Pension and Disability Fund is in a sound condition and denies reports of
irregularities in the fund which has a net worth of P20,092,762.92 (Dec. 31, 1935). He seat as that wise investments
in the found which three years have resulted in an income of more than a million pesos.

April 3 . — President Quezon assures the people at Legaspi that the government will continue its public works
projects in Albay and that the railway connection with Manila will be pushed through.

April 6 . — Speaker Gil Montilla is requested by President Quezon to come south and await him at Negros.

Consul General K. Uchiyama and a party of influential Japanese leave Manila by plane for Davao “to prepare the
ground” for the inquiry President Quezon is expected to make when he arrives Wednesday.

April 7. — The Rice and Corn Corporation is created at the office of the National Development Company. It is
capitalized at P4,000,000 with P2,000,000 paid up, one half of which came from the Treasury, the other half from
the Cebu Portland Cement Company as the holding company. Vicente Singson Encarnacion is elected Chairman of

the Board of Directors and President of the corporation. The directors are Assemblyman Manuel Roxas, Director of
Commerce Comelio Balmaceda, Dr Nicanor Jacinto, Mrs. Narcisa Vda. de De Leon Maximo Noel, and Dr. Victor
Buencamino, who is also Vice-President and Manager.

Secretaries Quirino, Eulogio Rodriguez, and Jose Yulo leave Manila to join President Quezon at Davao.

April 8 . — President Quezon sends congratulatory messages to General Douglas MacArthur and General Jose de los
Reyes because of successful army registration.

It is reported that Davao Constabulary officials have advised the insular officials that some Japanese “tenants” in
secret meetings have threatened “grave consequences” to Secretary Rodriguez if he persists in his attempts to drive
them off the land, and that a fund of from P40.000 to P50.000 has been raised by the Japanese farmers for legal
counsel.

The Manila Municipal Board approves the ordinance sponsored by Councellor Mariano Nable establishing a
"liberty” park on the old Luneta, similar to London Hyde Park where crowds may be harrangued unmolested on any
topic.

April 10 . — The Sugar Administration announces an increase of 69,947 tons over the Philippines 1936 sugar quota,
bringing the new allotment to 1,068,057 tons. The increase is based on increased United States consumption figures.

President Quezon arrives in Davao and immediately enters into conference on the Davao land problem.

Marsman & Company states in a letter to General Reyes that all of its employees called for military training will be
paid their full salaries during the training period.

April 11 . — The Japanese in Davao pledge amity and cooperation and request that present Japanese landholdings be
respected until the expiration of the leases.

The Committee on Pensions of the Assembly challenges the claim of the Bureau of Education that the Teachers’
Pension Fund is in sound condition.

April 13 . — President Quezon reserves several thousands of hectares of land in the richest agricultural sections of
Davao for homesteaders and announces that the penal colony will be used as a nucleus for the development of the
region.

He states at Zamboanga that he will shortly order the transfer of the convicts in San Ramon Penal Colony to Davao
to serve there as a center for colonization. Officials in Manila intimidate that Washington will be consulted in the
Davao matter and that pending receipt of the Washington viewpoint, the problem will remain unsettled. The Foreign
Office spokesman at Tokyo states that the Japanese government “hopes and trusts the Philippine Government will
recognize and respect the Japanese vested interests. He states that “a thousand Japanese have perished in Davao in
the past 30 years attempting to develop the country and fighting the savage aborigines. A vast sum of Japanese
money is invested in Davao.”

April 14 . — Commonwealth officials are reticent as to the Davao question, but it is reported that the Japanese
proposed not only the continuation of their present leases, but a renewal of them for another twenty-five years on the
basis of a Philippine -Japanese “partnership”.

Two U. S. destroyers are damaged in a collision just after dark in manuvers forty five miles northwest of Negra
point. Repairs will be made at Olongapo.

It is announced that Robert G. Woods, until recently chief clerk of the Constanbulary, has been appointed chief clerk
of the Army.

April 15 . — Uchiyama who returned from Davao yesterday issues a statement in Manila that President Quezon’s
conducting a personal investigation in the spot was a happy inspiration and has “to my way of thinking, paved the
way for a satisfactory solution. ... It seems to me the Davao question is mostly a psychological one. I say this
because once those annoying factors of distrust and suspicion are removed there will be no problem to speak of,
since there is no fundamental economic conflict involved that can not be smoothed out. Past experience shows that
the cooperation of the Filipinos and the Japanese has contributed to the economic development of Davao. I can not
see any reason why they should not be able to continue this cooperation provided it is based on mutual confidence
and goodwill.

Some 3,000 public and private school teachers report for instruction on the opening day of 30-day period of military
training.

April 16 . — President Quezon inaugurates the half-million peso pier at Iloilo.

April 17 . — The leaders of the National Assembly reported to be urging that the Council of State be called to consider
the Davao question, and not only the Cabinet.

The Board of Directors of the National Development Company approves the proposed sale of the Sabani Estate to
the tenants and also accepts the resignation of Tomas Earnshaw, General Manager of the Company, submitted some
time ago.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1936). News Summary. Philippine Magazine, 33(5), 223-227; 276.

President’s Month in Review: May, 1936

President’s Month in Review: June, 1 936

President’s Month in Review: July, 1936

President’s Month in Review: August, 1936

President’s Month in Review: September, 1936

President’s Month in Review: October, 1936

President’s Month in Review: November, 1936

News Summary, Philippine Magazine: October 15 - November 16, 1936

News Summary
The Philippines

Oct. 16. — The National Transportation Board, meeting today, is reported to favor a general policy of encouraging
the establishment of air connections with foreign countries. A. D. Williams, public works adviser to President
Manuel L. Quezon, is elected secretary and executive officer of the Board.

The Bureau of Science opens a laboratory for the manufacture of totaquina, which can be made at one -seventh of the
cost of quinine. It is believed that within six years enough cinchona trees will have been planted to supply local
needs.

Porfirio de Juan, one of the campaign managers of General Emilio Aguinaldo during the last election, is convicted
of sedition and sentenced to five years imprisonment. He will appeal. The case grew out of the nightly meetings held
last year at Kawit.

Oct. 17. — The China Clipper of the Pan American Airways Company arrives at Cavite carrying Harry W. Frantz of
the United Press and other prominent newspaper men on a press flight preliminary to the inauguration of the regular
commercial passenger service.

A number of members of the radical Sakdal organization are arrested at Malabon allegedly having confessed
complicity in the arson and bombing incidents in Manila on October 3.

Oct. 18. — President Quezon and other officials visit Pampanga and other flood-stricken areas.

Oct. 19. — President Quezon tells Frantz: “Our idea would be to maintain special commercial relations with America
not only during the life of the Commonwealth but after independence. If this idea is carried out, it naturally will
mean special cultural relations — that is to say that American institutions, American literature and ideas would
continue to merit our special attention in the Philippines because countries that are close in commerce tend also to
maintain close spiritual relations. Particularly would that be the case between the Philippines and the United States
because the English language is the foundation of all public school teaching in the Philippines including that in the
University of the Philippines and other high educational institutions. My honest opinion is that special trade relations
between the United States and the Philippines would be mutually beneficial. Not only do we have tropical products
needed in the United States, but we have many minerals needed, such as gold, chromite, and manganese. . . We are
also rapidly diversifying our agricultural production. . .”

The special session of the National Assembly, called by President Quezon last Saturday, opens to consider relief to
the storm-hit provinces, readjustment of the present pension systems, a general census for the Philippines next year,
etc.

President Quezon accepts the resignation of General Jose Alejandrino from the Council of National Defense.

Oct. 20. — The China Clipper with the newspaper men aboard, leaves Cavite early in the morning and meets
the Philippine Clipper traveling the other way. The latter lands at Cavite completing the final inspection flight and
carrying fifteen persons, among them Sen. W. G. McAdoo, Juan T. Trippe, Cornelius Vanderbilt Whitney, and
others including six newspaper publishers, Roy Howard among the others. Three women, Mrs. McAdoo, Mrs.
Trippe, and Mrs. Whitney, among the passengers, are the first women to fly across the Pacific. McAdoo states that
the new air service is of great economic significance and will also be a potent factor for peace.

Reported that the police have decoded telegrams from Benigno Ramos, Sakdal chief in hiding in Tokyo, revealing a
plan for a series of assassinations, the American High Commissioner and the Archbishop being included in the list.
Ramos is reported as denying that he is behind any subversive movements in the Philippines.

Oct. 21 . — Howard states that he stands squarely on the statement he issued in Manila in December, last year,
declaring that independence is a fading issue, and that he was not voicing his own opinions but had written a
reporter’s story. He states that at present he does not know of any group, commercial, political, or otherwise, that
has the slightest desire to see the Philippines continue under the American flag unless the Filipinos themselves
express a definite desire for it. “Any attempt to fix the political and economic future of the Philippines on the basis
of a permanent partnership with the United States must be a movement started by the Filipinos themselves. And it
will be a matter, very frankly, of educating the American public. The United States is not a colonizing nation. There
is now no force in the United States to have the Filipinos remain under the American flag, and, on the other hand,
there are very strong interests which will oppose such a move”.

The Assembly passes the PI, 500,000 relief bill on second reading.

After many days of recession, the Manila Stock Exchange records an average gain of 2.4 points to 250.3. Trading is
heavy as 12,929,145 shares change hands.

Oct. 22 . — President Quezon sends a special message to the Assembly recommending the abolition of the accrued
leave privilege for government personnel, stating that this was adopted mainly for the benefit and convenience of
those who came from the governing country, the belief being prevalent that white men could not live in the tropics
continuously for a long time without serious detriment to their health. With the establishment of the Commonwealth,
practically all position now being occupied by Filipinos, the reason for this privilege has disappeared, he declares,
and recommends instead a 15-day vacation period and sick leave not to exceed 15 days, both to be cumulative while
the officer or employee remains in the service, the maximum, however, not to exceed five months. The President
also approves the bill providing that the carriage of goods by sea between the Philippines and other countries will be
governed by Congressional law. He accepts the resignation of Associate Justice Claro M. Recto of the Supreme
Court, effective November 1 .

Reported that the Constabulary in Nueva Ecija, Pangasinan, and Laguna are continuing making arrests and
discovering unlicensed arms and dynamite; radical leaders are reported to be fleeing to the mountains.

Assemblyman Benigno S. Aquino in a speech in the Assembly challenges Howard’s statements and demands that he
name the “formidable minority here against independence”. He declares he wishes to serve notice that the
Philippines desires independence and will not swerve from the path marked out in the Tydings-McDuffie Act.

Stock market prices again go up an average of 5 points to an all-time high of 256.3. Trading volume was the
heaviest in weeks — 14,244,740 shares.

Oct. 23 . — President Quezon states in a press interview that the prevailing restlessness here is a counterpart of the
same movement in other countries and urges that justice be done to the workers as it is not enough for the people to
be “taught” to respect and love their government but that they must be in accord with the society in which they live.

The Philippine Clipper takes off at 5:45 a. m. for a courtesy flight from Manila to Macao and Hong Kong, carrying
27 persons, and arrives at Macao at 11:45. After a luncheon of the passengers with the Portuguese Governor, the
Clipper takes off for Hong Kong, arriving at 4:10 p. m. where the passengers are dinner guests of the British
Governor.

Fernando Maramag, Editor of the Tribune, dies, aged 43, after a long illness from tuberculosis although he worked
up to a few days of his death.

Oct. 25 . — The Philippine Clipper, returned to Manila, takes off at Cavite for its return journey to the United States.
Senator McAdoo states that he regrets his stay here was so short, but that he has seen everywhere signs of
improvement since his visit a year ago.

Oct. 26 . — President Quezon appoints Judge Pedro Concepcion, President of the Court of Appeals, to the Supreme
Court to take the place of Associate Justice Recto, resigned. He extends the session of the Assembly for another
three days.

Announced that the Monte de Piedad Building on Plaza Goite has been sold for approximately PI, 000,000 to a
group of brokers.

Oct. 27 . — The International Stock Exchange opens in Manila.

The Hawaiian Clipper lands at Cavite on the first commercial trans-Pacific passenger flight of Pan American
Airways, approximately eleven months after the first airmail flight, bringing eleven passengers, including two
women.

Oct. 28 . — President Quezon extends the Assembly session two more days. After hours of acrimonious discussion,
the bill providing for the liquidation of the Teachers Pension Fund is passed.

Some one hundred Sakdals are arrested in Pangasinan, bringing total arrests in that province to 141.

Dr. V. S. Clark, former economic adviser to President Quezon, states in his return to New York that “the tremendous
stock boom, which involves every social stratum and has an inflationery effect on other industries, comprises one of
the big uncertainties of the Commonwealth regime. If it should collapse it would be a blow financially and
psychologically to the people who are inexperienced in mass speculation.” Otherwise he found the Philippines the
“most prosperous in their history”. “The Commonwealth has a better Constitution than ours, and better budget
control, and the government actually is sounder financially than the United States. President Quezon is making an
admirable record”.

Oct. 30 . — The Assembly adjourns after passing many bills, including one postponing provincial and municipal
elections, and bills liquidating the present pension funds and establishing a new system. A census is also provided
for.

Nov. 1 . — Daylight saving time goes into effect at midnight, the clock being advanced one hour as authorized by a
law recently enacted and made effective by executive order. The object of the law is to make fuller use of daylight
hours and to permit workers to quit work earlier in the day.

Nov. 2. — H.M.S. Sandwich , British warship, visits Manila

Nov. 4. — Dr. Dean S. Fansler and Mrs. Fansler, accompanied by their daughter Priscilla, arrive in Manila after an
absence of twelve years. They are on sabattical leave and will be connected with the faculty of the Far Eastern
University for some time. The Fanslers were the founders of the English Department in the University of the
Philippines.

Nov. 5 . — Assembly leaders are jubilant at President Franklin D. Roosevelt’s victory in the presidential elections in
the United States, seeing in it continued opportunity for the furtherance of the Philippine cause. President Quezon
radios his congratulations.

President Quezon in a press conference praises the work of the Assembly, saying that every necessary measure has
been passed. He states it is his ambition to establish a government that will be a “practical demonstration of the
feasibility of the capitalist system, curing abuses, both capital and labor to receive protection and their due. In the
coming year I am confident that we will be able to place the landlord -tenant problem and the workman-employer
problem on a better basis than it has been at any time during the last three hundred years.” He states he is happy at
the reelection of Roosevelt as he is familiar with as well as sympathetic toward the Philippines and is interested in
our getting a fair deal in Congress. He states he is sorry the country is losing High Commissioner Frank Murphy,
who was elected Governor of Michigan, but that “in his place there is a man who is doing the work well and would

fit the job” — Acting High Commissioner J. Weldon Jones. Later President Quezon first sends a radiogram and then
talks with Murphy by radiotelephone, congratulating him on his victory.

Nov. 7. — At another press conference. President Quezon states in discussing the anti -sedition bill that any law that
would operate to gag the press would be automatically null and void under the Philippine Constitution. He makes it
clear that he considers the publication of proven charges against a public official as proper, but that he considers
newspaper editors have a definite responsibility in the selection and publication of news and in maintaining
accuracy. “There is no evil greater than any curtailment of the freedom of the press”, he states.

Nov. 8. — President Quezon announces the appointments of Judge Ricardo Nepomuceno as head of the Exchange and
Securities Commission; Under-Secretary Leon G. Guinto as Commissioner of Public Safety, heading the new state
police; and Quirico Abadilla as Director of the new Bureau of Mines.

Local Spanish sympathizers with the insurgents in Spain attend a Te Deum mass in the St. Augustine Church,
Intramuros, in celebration of the reported occupation of Madrid, afterwards proven to be false.

Nov. 9. — Resident Commissioner Quintin Paredes leaves for the United States.

Roy W. Howard states at Manila after a brief trip to China that he believes that the tide of Japanese aggression has
reached its peak and that the next few weeks will determine whether it has actually begun to ebb. “Today’s
indications are that China will be at war with Japan shortly, or a basis for peace will be effected which will last a
long time. China apparently has finally ‘called’ Japan. A show-down is near”.

Nov. 10. — The Manila stock market drops sharply in a general liquidation — an average of 33.3 points.

Nov. 11. — Announced that President Quezon has appointed Captain Leon Angeles as Governor of Sulu and has
given Acting Governor Ubaldo D. Laya a permanent appointment as Governor of Lanao. James R. Fugate, last
American provincial governor, is reported to be retiring under the American gratuity act.

Many stock issues slump another 30 points. The total sales on the two exchanges reach 8,774,003.

Nov. 12. — President Quezon in an executive order directs all national and local government officials to rigidly
enforce the laws and ordinances designed to prevent cruelty to animals. He recently approved a bill depriving agents
of the Society for the Prevention of Cruelty to Animals of the right to make arrests, saying that the government
should be responsible for the enforcement of the law.

William Tilden and Ellsworth Vines, former amateur tennis champions and now leading professionals, arrive in
Manila on their tennis-playing tour of the Orient.

Nov. 13. — Announced that the Robert Dollar Company has changed the Manila sailings of th ^President Lincoln and
the President McKinley , the only two American ships afloat in the Pacific service, due to the strike in the United
States, from the 14th and 18th respectively, to the 18th and 25th of this month. They will avoid Honolulu on the
homeward trip.

Nov. 15. — A hundred thousand people march past the reviewing stand on the Luneta in the longest military-civic
parade in Philippine history on the occasion of the first anniversary of the establishment of the Commonwealth.
Units of the new Philippine Army, the cadets of the Philippine Military Academy, various R.O.T.C. groups, and
high school cadets, reviewed by President Quezon, High Commissioner Jones, General Douglas MacArthur, General
Paulino Santos, and others, draw rounds of applause in their new uniforms. In the afternoon, at special exercises in
the Malacanan Palace grounds, prizes are awarded to model homesteaders, tenants, workers, employers, etc., and a
gold tablet is presented to President Quezon in which are inscribed the names of Filipino heroes, American
presidents and governors -general and members of Congress who played an important part in the work for Philippine
independence. President Quezon also plants a narra seedling, about a year old, raised from seed gathered from a

narra tree planted by Jose Rizal at Dapitan during his exile. In an impromptu address. President Quezon again voices
his concern over the welfare of the masses and declares that unless property rights can be reconciled with the right
of the average man to live, society and government, be it in the Philippines or elsewhere, can not long endure.
President Roosevelt during the day sent a radiogram reading in part: “May the success which has marked the first
year of your administration continue”. President Quezon also received congratulations from Secretary of War H. H.
Woodring and others.

Nov. 16. — Rear-Admiral Harry E. Yarnell, new Commander-in-Chief of the U. S. Asiatic Fleet, visits Singapore
before proceeding to the Philippines from Shanghai.

The United States

Oct. 15. — Marlin Pew, Editor of the Editor and Publisher, who visited the Philippines for the Commonwealth
inauguration, dies in New York, aged 58.

Oct. 19. — H. R. Ekins arrives in New York, completing a 25,904-mile flight around the world in less than eighteen
and a half days.

Oct. 22. — Sen. James Couzens, Republican, of Michigan, dies in Detroit, aged 64.

Oct. 29. — A Pacific coast maritime strike, affecting six unions with a membership of 37,000, goes into effect and
union officials say a sympathetic strike on the east coast will go into effect tomorrow. The strike has been brewing
for months and resulted from the refusal of operators to give preferential employment to union men, increased
wages, cash instead of time off for over-time work, and permit control of the “hiring halls” by labor.

In a final tabulation, the Literary Digest poll gives Alfred M. Landon 1,293,569 votes, Roosevelt 972,879, Alfred
Lemke 83,610, and Norman Thomas 1 1,822. Landon won twice as many states as Roosevelt. The Digest states, “We
overestimated the number of votes for Roosevelt in 1932. Are we overestimating the votes for Landon now?”

Oct. 30. — Rear-Admiral Harry E. Yarnell takes over the command of the U. S. Asiatic Fleet, relieving Admiral Orin
G. Murfin.

Lorado Taft, famous American sculptor and the youngest brother of the late William Howard Taft, dies in Chicago,
aged 76.

Oct. 31. — A spokesman for the shipowners at San Francisco, where some 200 ships are tied up, states that it will be
“useless” to resume negotiations while the men are on strike, declaring that the operators have insisted on their
“fundamental right to employ workers of their own choosing rather than men from the hiring halls which the unions
seek to control.” A labor spokesman states that the unions involved are willing at all times to negotiate acceptable
agreements. Grocery warehousemen have walked out in a sympathy strike.

Nov. 1. — Over 3000 drydock and shipyard workers walk out in sympathy. Men in Boston and some of the Mexican
Gulf ports are also walking out. In New York, union men vote for a strike to be effective in all Atlantic ports.

Nov. 2. — Coastwise and deep sea commerce is paralyzed as over 100,000 men remain away from work to await a
settlement of the issue. American vessels in Honolulu are reported strike -bound.

Nov. 3. — The general elections result in an overwhelming Democratic victory. Later reports show that.

Nov. 4. — Landon telegraphs President Roosevelt: “The nation has spoken and every American will accept the verdict
and work for the common cause and the good of our progress. That is the spirit of Democracy. You have my
sincerest congratulations.” President Roosevelt replies: “I am grateful for your generous telegram. I am confident all
Americans will now pull together for the common good and I send you every good wish”. Frank Knox, defeated

Republican candidate for vice-president states: “The people have merely indicated their will. I congratulate you on
the confidence they have expressed”. Earl Browder, Communist Party candidate, states that the Roosevelt victory is
a “rebuke to Red-baiters” and that at least the worst reactionaries were defeated in the race. Associated Press
dispatches show that the results of the election were well received in Europe.

High Commissioner Frank Murphy, who won the race for the governorship of Michigan while on leave from his
Philippine post, expresses gratitude for the support given his candidacy and “for the plain people’s faith in the
intelligent and progressive leadership of President Roosevelt”. He states he will have a special message for the
Philippines, presumably announcing his intention not to return.

Nov. 5 . — The reaction of Wall Street to Roosevelt’s reelection is strong and many stock issues register gains.
President Roosevelt tells a cheering send-off crowd at Hyde Park, his private home, that he is returning to
Washington “to try to balance the budget, thereby carrying out the first campaign pledge”. Prospects that he may
personally attend the Inter- American Peace Conference in Buenos Aires, opening December 1, stirs European and
Asiatic diplomats, according to Washington reports, it being believed that this may open the way for a renewed
emphasis on United States policy with a probable ascendancy in Far Eastern affairs.

Nov. 7. — Secretary of Labor Frances Perkins states that there are no immediate plans for a direct presidential
intervention in the marine strike. New York seamen launch a strike that threatens to tie up all American shipping.

Leading independent steel companies announce a wage increase, but John Lewis of the American Federation of
Labor states this does not meet the union demands because workers are not given “the benefit of increased
productivity”, and he calls attention to the large dividends declared earlier in the week. The “wage -increase
movement” is spreading to the textile industry, it is reported.

Secretary of State Cordell Hull and others of the American delegation sail for the Pan-American Peace Conference,
striking maritime workers having decided to permit his ship to sail. Hull tells a group of women peace advocates
that he expects the Conference will establish a model peace machinery which the rest of the world will do well to
copy.

Father Charles E. Coughlin, the “radio priest”, announces the withdrawal of himself and his National Union for
Social Justice from the political field.

Nov. 8 . — a federal judge in Los Angeles issues an order authorizing the United States Marshal to take temporary
charge of the S.S. California in the harbor to permit the unloading of bananas, directing him to employ the necessary
help at union wages. The order was directed against the shipping company, the captain of the vessel, and a number
of others. It is expected that many other consignees of perishable goods may apply for similar orders under which
pickets, attempting to interfere, would be liable for contempt of court.

Nov. 9 . — The Supreme Court announces that it refuses to hear appeals attacking the constitutionality of the payment
of the proceeds of the coconut oil tax to the Philippines, and it is expected that the collections, amounting to some
$33,000,000 will shortly be turned over to the Philippine Government as provided by law.

Longshoremen at San Pedro vote against permitting the unloading of the S.S. California, and the strike committee
telegraphs President Roosevelt protesting against the use of federal officers in breaking the strike. The U. S. Marshal
announces he will delay serving the court’s papers. Attorney-General Homer S. Cummings instructs him later to
disregard temporarily the order of the court for compulsory unloading until a solution of the legal problems involved
is arrived at. The strike committee at San Lrancisco votes to release perishable cargoes tied up in the strike there.

Nov. 10. — Sen. McKeller states he will seek a congressional investigation of the Literary Digest poll which
predicted that the Republican presidential candidate would win an overwhelming victory. “Measures should be
taken to prevent such a wicked, costly, and apparently dishonest performance ever again occurring just before a
national election”, he declares.

Nov. 12 . — Eugene O’Neill, American playwright, receives the 1936 Nobel Prize in literature, and Prof. G. D.
Anderson, of the California Institute of Technology, receives one half of the prize in physics, dividing it with Prof
V. F. Hess of Austria. Professor Anderson some years ago discovered the positive electron or positron.

Other Countries

King Leopold of Belgium tells his Cabinet that “our policy must aim resolutely at placing us outside conflicts with
our neighbors. . . . Defensive alliances open the country to invasion”. It is believed this statement may mean the
repudiation of the Franco-Belgian military aid pact and a withdrawal from the Locarno treaty. The Belgian
Ambassador, however, is reported to have informed Britain that Belgium will fulfill its League of Nations
obligations.

Reported that Germany has informed Britain that the proposed Locarno conference must confine itself to seeking a
solution of western European problems and not touch Russian-German relations if Germany is to participate.

Oct. 17 . — China formally protests against the Japanese military occupation of the Tangku salt fields. Salt has long
been a Chinese monopoly.

Seventeen American war vessels arrive at Shanghai, bringing the total to 24. At present there are 39 warships of
various foreign nations there, including 8 Japanese, 3 French, 3 British, and one Italian ships.

Rioting in Bombay between Hindus and Mohammedans continues, a total of 43 having been killed and some 400
people injured during the past few days.

Oct. 18 . — Chancellor Kurt Schnuschnigg of Austria receives a chilly and silent reception at Vienna when he
addresses some 350,000 persons in the great political rally in Austrian history, despite the dispensing of substantial
breakfasts and tickets for food, cinemas, etc., all gratis. Even his promise of social improvements did not shake the
audience’s stiff silence.

Oct. 19 . — Spanish rebel forces are reported to be within 20 miles of Madrid and to have cut several railroad lines to
the capital.

Reported from Tokyo that the Ministers of War and of the Navy have agreed to ease their agitation for drastic
reforms in the administrative machinery of the government and to accept Premier Hirota’s wish to postpone
discussion of the question until after the Diet session, thus averting the Cabinet crisis which has been threatening.

Oct. 20 . — President Manuel Azana and four Cabinet members arrive in Barcelona which according to reports has
been named the capital of the Iberian Republic. The Spanish Ambassador to Britain hands Lord Plymouth, head of
the Non-intervention Committee, a note charging that Germany and Italy, are again meddling and that a large
number of tanks, flame-throwers, and planes have been landed at Cadiz and munitions at Algeciras. Russian workers
demand that arms be sent to Spain immediately to aid the leftist government. Britain urges Italy and Portugal to
speed their replies to Russia’s charges of violation of neutrality.

Oct. 21 . — Reported that the conference between Foreign Minister Chang Chun and Ambassador S. Kawagoe
resulted in the former’s refusal of the two major demands of the Japanese — autonomy for North China and “joint
Sino-Japanese action” against communism in China, as damaging to China’s sovereign rights.

Oct. 22 . — Reported that the rebels are within 13 miles of Madrid. Germany charges Russia with violating the non-
intervention agreement and Madrid with falsifying evidence against Germany. Portugal and Italy state they will
reply to the Russian charges shortly.

According to Japanese sources, the Chang-Kawagoe conference will probably reach an impasse or a definite break-
down, “with most serious consequences to China”. Northern Chinese display a smoldering indignation as Japanese

prepare a temporary military occupation of Peiping, Tientsin, and nearby towns as part of the “annual maneuvers”
starting Sunday and lasting until November 5.

Announced at Singapore that the Netherland Indies fleet of more than 20 war ships will visit Singapore on
November 14.

Oct. 23 . — Russia delivers a note to the Non-intervention Committee demanding that the Spanish government be
given the right and the facilities to purchase arms, and declares that it no longer considers itself bound to the
agreement to “any greater extent than the other participants”. The note terms the non-intervention agreement as a
“torn and empty sheet of paper”.

Oct. 24 . — The Spanish government mobilizes a quarter of a million men in Madrid; seven out of every ten men
between the ages of 18 and 40 are in loyalist uniform. The Spanish Embassy at London announces that the Governor
of Spanish Guinea on the African west coast, has reported that a Portuguese motorship, the Ciudad de Macao , on
October 14 sank the Spanish ship, the Fernando Po, drowning 40 of the crew, and then fired upon the residence of
the Governor, afterwards landing and forcing the authorities to surrender the building. The Embassy also announces
that 15 German submarines passed through the Strait of Gibraltar on October 19 and that 160 Germans had arrived
in Seville aboard a German vessel on October 8 to join the fascist forces. Italian and German delegates request
clarification of the last Russian note. Lord Plymouth stating he is also at a loss to understand the letter. The
Catholic Venire d Italia (Rome) publishes a statement declaring that alleged communist atrocities in Spain have
resulted in the murder of over 15,000 priests, friars, and nuns, the execution of ten bishops, and the sacking and
burning of 19,000 chinches, convents, and religious schools.

French rightists and leftists are both reported to be anxiously watching the growing power of the Belgian fascists as
their domination would greatly affect French internal policies and radically shift the international political line-up.
Belgian troops have been ordered to “stand by” in their barracks.

Hermann Goering, Air Minister, and Premier of Prussia, orders a more complete government control of industry to
bring it to the highest level of preparedness.

Germany officially recognizes the Italian annexation of Ethiopia following the conclusion of a “concrete and
definite Italo-German accord” reached at Berlin yesterday between Count G. Ciano and Baron K. von Neurath,
former Ministers of Italy and Germany respectively.

The Japanese garrison arbitrarily declares that Japanese troops will occupy some 200 Chinese homes on the outskirts
of Tientsin during the maneuvers. The resulting alarm is causing a general evacuation of Chinese residents, mostly
workers in cotton mills recently acquired by the Japanese.

Oct. 26 . — In the endorsement of a conference to rewrite the Locarno treaty, guaranteeing European borders only in
the West, Italy and Germany officially announce they will cooperate “to protect European peace and the holy riches
of European civilization”.

Some 800 “Resists”, members of a fascist organization outlawed by the government, are arrested during the course
of a day-long demonstration in Brussels.

Yang Yung-tai, pro-Japanese Chairman of the provincial government of Hupeh, is assassinated by a Chinese.

Oct. 26 . — A number of Russian ships are reported to be on the way to Spain to bring food and munitions. The
Catalonian government is also rushing aid to Madrid. Portugal sends a note to the Non-Intervention Committee
charging that the civil war in Spain is the outcome of Soviet influence in Spanish affairs. The London Times hints
that Britain may possibly recognize the rightist provisional government of Spain as Madrid has “brusquely rejected
the British offer to help exchange prisoners and hostages”.

Oct. 27 . — The International Federation of Trade Unions and the Labor International, in a joint meeting in Paris,
adopt a resolution calling upon the British and French governments to take steps to reestablish complete freedom of
trade in favor of the Spanish government in consequence of the failure of the non-intervention agreement, and also
invite trade unions throughout the world to prevent supplies being sent to the rebels.

Vice-Admiral Sir Charles Little, Commander-in-Chief of the British squadron on Chinese station, postpones
arrangements for a courtesy visit to Japanese waters as a result of an incident on October 7 at Keelung, Formosa,
where three British sailors were manhandled by the Japanese police, one man’s jaw being fractured, and a British
naval officer, who sought to come to their aid, was insulted. The sailors got into a dispute about a taxie-cab fare, but
there is good evidence to show that this was paid.

Mrs. Wallis Simpson, American friend of King Edward VIII, is granted a divorce at Ipswich, England, on grounds
of infidelity on the part of the husband.

Oct. 28 . — Untrained leftist militiamen fight valiantly in an effort to halt the steady advance of the rebels. All men
between 20 and 45 have now been mobilized. The food situation in Madrid is becoming desperate. General
Francisco Franco demands surrender within 48 hours or “suffer terrible punishment”. The Barcelona government
decrees the socialization of all industries employing more than 100 persons together with that of all abandoned
factories. The Non-intervention Committee at London announces that Madrid’s charges against Italy and Portugal,
and Russia’s charges, are either insufficiently proved or disproved. The Russian delegates dissented on every point
and the Russian government terms the Portuguese accusations grotesque and blames Britain for “white-washing”
Germany and Portugal and also for encouraging the fascist nations to prepare for war against Russia.

Oct. 29 . — The fighting around Madrid takes a sensational turn with government forces claiming smashing victories
over the rebels, the indications being that the government has received supplies of small, fast tanks, airplanes, and
ammunition, some of these from Russia. Women in Madrid march beside the men going to the front, telling them to
“fight to the death”. Reported from France that a new government army with Russian equipment has gathered at
Albaceta and Alicante to attack the rebels from the rear in time to save Madrid. Captain Anthony Eden, British
Foreign Secretary, tells the House of Commons that Britain will continue its policy of non-interference in Spain, as
the only practical alternative to “confusion, international recrimination, and maybe war”. He states there is
insufficient information to support the Russian charges and declares that Britain will continue to keep in close touch
with France as “the two democratic nations have an especially responsible role to fill”.

A Chinese Foreign Office spokesman states with reference to the recent manifesto of Peiping educators demanding
resistance against foreign encroachments, meaning the Japanese, that "the demand is wholly acceptable by the
government and that the government will resort to the last sacrifice if a foreign power threatens the existence of the
Chinese nation. Japanese Consul-General Y. Suma states that the “fundamental spirit of the Japanese Foreign
Office’s instructions are that the Japanese claims remain unchanged”.

Oct. 30 . — A rebel air raid kills over a hundred people in Madrid, most of them children. A Lisbon report declares
that the rebels have captured many prisoners on the Madrid front, including some 300 Russian soldiers.

Nov. 1 . — Premier Benito Mussolini states in a radio speech that Italy rejects the “illusion of collective security” and
that its policy is one of armed peace. He declares it is necessary to “destroy everything built on Wilson’s ideology”
and that the League “must either be destroyed or completely reformed”. He states that Italy and Britain should be
able to agree on their rights and interests in the Mediterranean, but that “if an attempt is made to smother the life of
the Italian people in the sea which was the sea of Rome, then it had better be known that the Italian people would
spring up as one man ready to fight”, for the "life line to the new colony of Ethiopia”. He states that as long as
France preserves a “reserved attitude” toward Ethiopia, Italy will “do the same regarding France”. He also declares
that until justice is done to Hungary, there can be no peace in the Danubian basin and that the German-Austrian pact
has strengthened Austria’s independence. The only other friendly remark in the entire speech is a reference to
Germany which, he says, has “gained the sympathy of the Italians.” The hostile reference to the League shocks
Geneva and is expected to drive Britain and France closer together and also to consolidate the Little Entente. The
address contains no reference to the Spanish situation, apparently considered too delicate by II Duce.

A Japanese military spokesman states that the Chinese government’s recent protest against the Japanese maneuvers
in North China “does not deserve a reply because it is worthless”. He denies the action is a violation of treaty rights.

Nov. 2. — The Spanish government makes an effort to strengthen the economic position of Madrid by decreeing the
militarization of all industries directly or indirectly related to military operations. The populace evinces horror at
long parades of hearses with banners saying: “Victims of the barbarous cruelty of the insurgents who employ foreign
mercenaries to kill women and children”.

The Giornale d ’Italia states that Italy’s foreign policy is “dominated by the alternatives of a frank peace or an
inevitable war with Britain in the Mediterranean and in Europe”. The London Times asks “who is attempting to
violate Italian interests or threatening to suffocate Italy? It is a cardinal British policy that the Mediterranean remain
an open highway for international traffic, and it is common knowledge that Britain will go to any lengths if
necessary to maintain its freedom. There is nothing new in the situation and no agreement could add anything to the
recognition of Italian rights and interests in this respect”. A Berlin official bulletin expresses satisfaction with
Mussolini’s speech stating that he has “shown the way to a policy of realities likely to create a firm basis for friendly
and fruitful international relations, with due regard to the vital necessities of all concerned”. A French spokesman
states that France will support the League peace formula through collective security and has not abandoned hope of
convincing world powers to reconsider disarmament.

Headquarters of the British Asiatic naval forces at Hong Kong disclose the alleged details of the Keelung incident,
stating that the three British sailors were held down and beaten and that the man whose jaw was broken was forced
to sign a confession to the effect that his injury was received in a cabaret brawl by jabbing a fountain pen under his
fingernails and forcing ink into the wounds.

The Japanese enter on the seventh day of the war games with Peiping as the objective, in spite of Chinese protests.
The Japanese garrison spokesman states: “It is a Chinese custom to make meaningless protests”.

Nov. 3 . — King Edward, addressing Parliament, states that his government’s policy is based upon membership in the
League and desires to see the League strengthened for its work in the pacific settlement of international disputes. He
states that Britain will continue its efforts to bring about a meeting of the Locarno treaty signatories for the
appeasement of Europe and expresses the opinion that the present negotiations for treaty limitation in naval
armaments will succeed. He states also: “My government has followed with concern the political situation in the Far
East where peace and tranquility are so essential to the important interests of my people in that part of the world. It
is my hope that the negotiations now in progress between China and Japan may result in a satisfactory solution”. He
declares the government will continue its support for non-intervention in Spain, but “will take every opportunity to
mitigate human suffering and loss of life in that unhappy country”. “While losing no opportunity to promote the
general peace,” he states, “the work of strengthening the defense forces is being pressed with the utmost energy and
is now making rapid progress. . . . My government is satisfied that the measures being taken are essential to the
defenses of my Empire and to the ability of this country to discharge its international obligations”.

Nov. 4 . — Eden delivers a speech in the House of Commons stating that Britain’s relations with France are close and
cordial as it is natural that in the disturbed state of the world the two Western democracies should be drawn together,
but that there is nothing exclusive in that friendship, and that what he said about France applies also to Belgium and
that there have also been repeated declarations on the part of Germany of the desire for closer Anglo -German
friendship which Britain reciprocates. “Two conditions are inevitably attached to any British friendship, — that the
friendship should not be exclusive and that it should not be directed against any one else.” The defects in Anglo -
British relations are due, he states, to Britain’s endeavor to fulfill its obligations under the League Covenant. He
declares that Britain does not challenge Mussolini’s words to the effect that the Mediterranean is Italy’s very life,
but affirms that freedom of communications in the Mediterranean is of vital interest to British commonwealth of
nations. He states, too that Britain believes there will never be an enduring peace without an arms agreement and
that some nations are beginning to sacrifice the standard of living to the standard of arms; nevertheless, Britain has
to be strong, both in purpose and in arms, and re-equipment must be all-embracing, as the stronger Britain is, the
greater is the security of peace. The speech is reported as having met with disappointment in Italy as Eden “ignored”
Mussolini’s offer of an Anglo-Italian agreement — which is interpreted as a rebuff to the Premier.

Nov. 5 . — The rebels launch the “Battle of Madrid”, preparing to invade the capital. Under the heavy shell -fire, the
people rush into the crowded streets, and many are reported killed and hurt. Fierce Moorish hordes lead the charges
against the city.

Nov. 6 . — Women march to battle besides the men shabbily clad in over-alls to form a determined human wall. The
situation in Madrid is said to be pathetic as the already crowded city is filled with refugees, the normal population of
900,000 having risen to 1,500,000. Many civilians are being slaughtered by rebel shells and bombs.

Reported from London that the Keelung incident is regarded as serious there and may result in the cancelling of all
courtesy visits of the ships of the Royal Navy to Japanese ports and of Japanese naval vessels to British ports.

Nov. 7. — Fighting within the limits of Madrid is reported and government officials are said to have withdrawn to
Valencia, leaving a military government in command. President Manuel Azana has been in Barcelona for several
weeks.

Due to the British government’s determination not to suspend Jewish immigration into Palestine pending the
findings of the Royal Commission, now on its way from London to Jerusalem, the Arabs are reported to have
decided to boycott the Commission.

Nov. 8 . — Mussolini tells a newspaper correspondent that he wants a “gentleman’s agreement” with Britain in regard
to the Mediterranean.

One thousand Mongol troops, equipped with modern weapons and escorted by military airplanes, led by Japanese is
reported to have occupied Pailingmiao, political center of Inner Mongolia.

Nov. 9 . — Germany informs Britain of its misgivings in connection with a possible Anglo-Italian agreement, stating
this would violate the Ciano-Neurath understanding.

Russia and Japan conclude an eight-year renewal of their fishing agreement, granting Japanese the right to fish in
Soviet waters where the bulk of Japan’s sea-food is obtained. The agreement is believed to indicate a
reapproachment between Russia and Japan.

Nov. 10 . — The bloody battle for the possession of Madrid continues to rage, but the rebels are meeting with stiff
resistance, the loyalists desperately holding their positions against fascist and Moor onslaughts.

Budget figures just published indicate that France will spend more than 19,000,000,000 francs ($879,700,000) for
national defense in 1937, almost fifty per cent more than the amount spent this year.

Foreign Commissioner M. Litvinov states in answer to Mussolini that one can not call a system of collective security
bankrupt when it has not been tried by a majority of the members of the League. Every success of and every
concession to the aggressor results in further aggression, he states. “Russia stands for non-aggression pacts with all
its neighbors, but is not afraid of isolation as its armed forces are its industry give it a position of superiority over
any possible enemy or combination of enemies.”

Nov. 11 . — Fresh Catalonian regiments force the rebels to fall back. Reported that a new foreign legion composed of
French, German, and Russian anti-fascists, have taken the field and are bolstering up the loyalist militia. Flames
spread through forty blocks in the northwest section of Madrid after terrific artillery and aerial bombardment. A
fascist general who stated in a radio broadcast yesterday that the fascists would enter Madrid whenever the
command is given, declares in a broadcast today that the taking of Madrid is not so simple as desperate resistance
has been met with.

At a tri-partite Italo-Austro-Hungarian conference held in Vienna, recognition of the Italian conquest of Ethiopia is
announced. An earlier announcement states that Mussolini favored the ascension of Archduke Otto to the throne of
Austria.

The seventh conference between Chang and Kawagoe ends in another deadlock. The Chinese government addresses
notes to the nations maintaining diplomatic establishments in China asking the immediate evacuation of all
foreigners in northwestern China, “necessitated by bandit suppression operations” in Suiyuan, Ninghsia, and
Chinghai provinces and “also some other parts of Inner Mongolia under separate jurisdiction of Mongolians”,
where, it is stated, heavy fighting has broken out near Taolin when Chahar troops and Mongolian irregulars
attempted to invade Suiyuan.

Reijiro Wakatsuki, former Premier, appeals to the Japanese nation to resist any attempt to form a dictatorial
government, denouncing also the Russian, German, and Italian dictatorships. The declaration is the strongest
expression yet dared against attempts of the militarists. The Vice-ministers of the Army and Navy assured a special
ministerial commission that the fighting services are not aiming at such a dictatorship when a sensation was created
a few days ago by reports that the military plans for a dictatorship were rapidly maturing.

Nov. 12 . — General Franco orders his forces to make no further attempts to enter Madrid until the present positions
are consolidated, but threatens that if Madrid does not surrender, it will be destroyed district by district. Italian and
Russian delegates to another meeting of the Non-intervention Committee engage in a unprecedented battle of words,
during the course of which a Russian spokesman declares that Mussolini is “nothing but a satellite of Fuehrer
Hitler”.

Reported that Japan will drop its demand for joint Sino-Japanese anti-communist operations throughout China, but
will continue to press for a “special status” for North China.

Nov. 14 . — Rebel planes bomb a crowded plaza in Madrid during a mass meeting at which defense plans are being
discussed, killing several scores and wounding over a hundred people. One bomb penetrated a supposedly bomb-
proof subway.

Germany advises the powers of its abrogation of the clause in the Versailles Treaty providing for the
internationalization of the Rhine, Danube, Oder, and Elbe rivers, it is understood with the previous consent of Italy,
Austria, and Hungary.

Nov. 15 . — Combined “Manchukuoan” troops, Mongolian irregulars, and Chinese bandits are entering Suiyuan and
Chahar and threatening Shansi province, it is believed in a Japanese-inspired effort to embarrass China in its present
negotiations with Japan.

Source: University of Michigan

Hartendorp, A. V. H. (Ed.). (1936). News Summary. Philippine Magazine, 33(12), 584-587, 643-645. Retrieved
from https://archive.Org/stream/acd5869.0038.001.umich.edu#page/n5/mode/2up .

News Summary, Philippine Magazine: November 7 - December 12, 1937

News Summary
The Philippines

Nov. 76. -President Manuel L. Quezon conditionally pardons 32 prisoners convicted of sedition, most of them
having been involved in the uprising in Laguna and Bulacan two years ago.

Samuel R. Hawthorne, well known Manila business man, dies of a stroke, aged 45.

Nov. 77.-The Department of Justice announces the completion of the reorganization of the justice of the peace
courts throughout the country and the names of the new judges are released in port. Some 500 judges will be named
to take the place of the former 800, the new men all being lawyers of from 5 to 10 years practice; in some cases
judges who are not lawyers have been retained because of their experience.

Some 800 persons attend a meeting at the Manila Grand Opera House, representing various radical labor and
political groups, where attacks are made on the bill amending the sedition act, the “G-men” bill, the postponement of
elections bill, the daylight-saving time bill, increases in taxes, etc., and resolutions are adopted petitioning President
Quezon to veto these measures. Celerino Tiongko, Sakdal leader, states hat Quezon is a virtual dictator who will
“one of these days, declare himself king”.

Nov. 18 . -President Quezon approves the election postponement and the sedition bills and a number of others.

Manila light, telephone, gas, and water rates are attacked as too high before a hearing of the National Assemble
committee on public utilities of which Gregorio Perfecto is chairman.

Nov. 19 . — President Quezon appoints City Engineer Santiago Artiaga, Mayor of the city of Zamboanga, and Jose
Garrido, Assistant Engineer, is named City Engineer of Manila. Mr. Artiaga was acting Mayor of Manila a number
of times.

In a shooting and stabbing affray at Bantay, Ilocos Sur, two persons are killed and four seriously wounded including
acting Governor Eugenio Paz.

Nov. 20 . — President Quezon appoints provincial Treasurer Nicasio Valderrosa of Zamboanga, Mayor of Davao city.

Datu Mualli’l-Wasit, brother of the late Sultan of Sulu and claimant to the sultanate, dies suddenly at Maimbung. He
was to have appeared with the other heirs in the Court of First Instance this afternoon for the probation of the late
Sultan’s will. He was 65 years old and leaves three children, the oldest being Ysmail, 32-year-old school principal.
Although Dayang-Dayang Hadji Piandau, niece of the late Sultan, claimed to be the acting sultan because she was
the manager of his household, Datu Mualli’l-Wasit was proclaimed sultan by his followers some months ago and
occupied the palace at Maimbung. He was to have been crowned next month.

President Quezon appoints Secretary of the Interior Elpidio Quirino, Secretary of Agriculture and Commerce
Eulogio Rodriguez, and Mauro Mendez to compose the Information Service Board.

Nov. 21 . — Physicians state that the death of Datu Mualli’l-Wasit was due to heart-trouble.

Juan Arellano retires as Consulting Architect (chief government architect) as a result of the prohibition of
government officials engaging in outside work and his resignation having been accepted with regret. Antonio
Toledo, Assistant Consulting Architect, has been named in his place.

Norman H. Hill, Administrative Assistant to the American High Commissioner, leaves on the Hawaiian Clipper for
the United States to became executive secretary to High Commissioner Frank Murphy, recently elected to the
governorship of Michigan.

Nov. 22 . — Followers of the late Datu Mualli’l-Wasit, proclaim his eldest son, Datu Ysmail Kiram as the new sultan
in accordance with the alleged tradition that a sultan may not be buried until his successor hat been proclaimed.

Nov. 23 . — President Quezon appoints Lino J. Castillejo, Superintendent of Private Schools, Director of Private
Education, a new Bureau of Private Education having recently been created by law.

Nov. 25 . — President Quezon names Leonardo Festin head of the recently created Census Bureau.

The yacht Casiana, renamed the Banahaw, arrives in Manila from Los Angeles to augment the Coast Guard service,
although it will be used principally by the President, who boards it in the evening for a short cruise to the Bisayas.

Commissioner Leon G. Guinto leaves on the S.S. President McKinley for the United States to study American police
organization. Two government pensionados. Miss Nelly X. Burgos end Dr. Fe del Mundo, leave on the same ship
for post-graduate studies in the United States.

Nov. 26 . — The ”Anak Pawis”, a radical farmers’ organization, is declared illegal in a decision of the Court of First
Instance of Laguna.

The College of Agriculture at Los Banos successfully demonstrates the production of ham without refrigeration, the
method being the introduction of a brine curing mixture through the main arteries of the leg and subsequent
smoking. The process is reported to be simple enough for the average farmer to use and may result in greater
economy and better diet in a country where most meat has had to be eaten within a day or so after slaughtering.

Nov. 27 . — Reported that the government has started proceedings for the expropriation of the San Pedro Tunasan
estate in Laguna under the act appropriating PI, 000,000 for the purchase of haciendas for resale to the present
tenants. The Estate is owned by the Colegio de San Jose and leased to Carlos Young.

The Board of Regents of the University of the Philippines rejects the appeal of the Scholastic Philosophy Club from
a decision of the Executive Committee that no priest, minister, or other teacher of religion may become the adviser
or unofficial teacher of any student group meeting on the University premises.

Deogracias A. Rosario, Associate Editor of the Manila Taliba, dies of a stroke, aged 42. He was one of the
recognized pillars of Tagalog literature.

Nov. 28 . — The High Commissioner’s Office releases a report to the effect that 21 of Britain’s war vessels will visit
the Philippines with the approval of the U.S. Department of State during the months from January to March.

Nov. 30 . — President Quezon states in a press interview that Dr. Jacobo Fajardo, suspended Director of Health, will
be asked to submit his resignation as a result of the report of a committee appointed to investigate certain charges
brought against him.

Dec. 1 . — President Quezon announces that he has named Vice-President Sergio Osmena to head the Philippine trade
delegation to the United States. He also announces the appointment of Mariano S. Cuenco, Cebu political leader, as
Secretary of Public Works.

Major-Gen. Paulino Santos announces that Col. Juan Dominguez, Chief of the Manila Secret Service and former
head of the Intelligence Department of the Constabulary, has been appointed Superintendent of the Intelligence
Division of the Philippine Army.

Dec. 2 . — President Quezon creates the National Flood Control Board to act in an advisory capacity to the
government. Headed by the Director of Public Works, the following entities will be represented; the Bureau of
Forestry, Manila Railroad Company, Metropolitan Water District, College of Engineering, University of the
Philippines, the National Research Council, and the Philippine Society of Civil Engineers.

Prices decline 22.45 points to 140.79 on the Manila Stock Exchange with a big turnover of 4,814,826 shares. This is
21.69 points lower than the point reached during the drop of November 11, and 115.51 points below the highest
average of 256.3 on October 22. Stocks on the International Stock Exchange fell to 93.58 points, lowest since the
operation of this exchange. The turn-over totalled 2,257,000 shares.

Dec. 4 . -President Quezon names Marcial Kasilag, acting Director of the Bureau of Public Works, as permanent
head of the Bureau.

President Quezon names Pulupandan, Hondagua, and San Ildefonso as regular ports of entry, under the supervision
of the Collector of Customs, in addition to the ports of Manila, Cebu, Iloilo, Zamboanga, Davao, Jolo, Legaspi,
Mambulao, and Aparri. He also names some 56 town and municipal districts as municipal ports to be maintained by
the municipalities.

Dec. 5 . — President Quezon exchanges the previous appointments of Santiago Artiaga as Mayor of Zamboanga, and
of Nicasio Valderrosa, as Mayor of Davao, in response to petitions of the people of Zamboanga who want Mr.
Valderrosa.

The Supreme Court adopts a resolution requiring all lawyers appearing to argue cases before the Court to wear black
gowns.

Dec. 7. — President Quezon leaves en the S.S. Empress of Japan for a brief vacation in Hongkong. Secretary Jose
Yulo, Assemblyman Manuel Roxas, Rafael Alunan, and a few others accompany him.

Manila suffers from a meat-shortage due of meat dealers who refuse to slaughter their animals at the city
slaughterhouse because of the increase in the fees from 3 to 5 centavos a kilo.

Dec. 8 . — Reported that large areas in Isabela and Cagayan were submerged as typhoons and rain and that there was
an enormous loss of life — possibly over a thousand persons having been drowned in the rising waters. President
Quezon is informed of the situation immediately adopted.

Secretary Quirino appoints Captain Fernando Fores, acting Chief of the Manila Secret Service, taking place of
Colonel Dominguez.

Dec. 12 . — The meat dealers strike in Manila is settled, the Manila government agreeing to suspend the ordinance
increasing slaughter house fees and to impose higher rates gradually.

The United States

Nov. 11 . — San Francisco and Oakland, California, begin a four-day celebration in honor of the opening of the great
East Bay Bridge, connecting the two cities, the longest bridge structure in the world, over eight miles long with a
clearance over the gates of 217 feet, sufficient to permit the passage of the greatest ocean liners. The bridge cost
some $78,000,000.

Following a report that Britain is contemplating the purchase of numerous American war planes, a conference is
held at the White House and it is later announced that the government will prohibit the export of fighting planes
until at least a year after deliveries have been made to the U. S. Army and Navy.

Two thousand standed passengers and seamen in Honolulu, eating up Hawaii’s diminishing food supply, and
spoiling cargoes of fruit and eggs, are part of the problem created by the great shipping strike. It is estimated that
170 vessels are tied up on the West Coast and 239 on the Atlantic Coast and at Gulf ports.

Nov. 13 . — Assistant Secretary of Commerce J. M. Johnson states that the Department officials have decided that
Filipino seamen would be considered aliens under the new American Maritime Act.

Nov. 14 . — Huge losses force the American Ranger Line, operators of freighters between Philadelphia and the Gulf
ports, to accede to the seamen’s demands for an 8 -hour day in the engine room and for the stewards, to union control
of hiring, and to cash payment for over-time. Losses in San Francisco alone are estimated at $7,000,000 daily. Rep.
Vito Marcantonio of New York charges that shipowners are transporting “gangsters throughout the country” as
strike-breakers.

Nov. 15 . — President Roosevelt warns that a dangerous situation may arise from the large sums of foreign capital
being invested in American securities if these were suddenly dumped on the market, and suggests that the Federal
Reserve Board study legislative means to control these investments estimated at over $7,000,000,000. In recent
weeks £15,000,000 in gold has been shipped from London. The French are also exporting gold for political reasons,
and international gamblers are buying in the belief that the United States is on the threshold of a big industrial boom.
American operators are also buying securities through brokers abroad to evade American taxes.

Nov. 15 . — Officially stated at Washington that President Franklin D. Roosevelt may make a trip to the Philippines in
the fall of 1937.

Nov. 17 . — Vicente Villamin tells the National Grange convention in Columbus, Ohio, which had adopted a
resolution favoring high tariffs on Philippine imports, that this would result in a loss of trade to America and
strengthen the economic and military position of Japan. He pleads for a complementary rather than a conflicting
economy between the two countries and states that a trade of $1,000,000,000 annually would be possible under such
conditions. Lewis J. Taber, Master of the Grange, states that his organization favors a complementary policy.

Nov. 17 . — President Roosevelt appoints Charles Edison, son of the late inventor. Assistant Secretary of the Navy, a
position left vacant by the death of Henry L. Roosevelt.

Madame Ernestine Schumann-Heink, beloved and world-famed singer, dies in Hollywood, aged 75. She was the
daughter of an Austrian father and an Italian mother and became a naturalized American citizen in 1905. She had
sons on both sides during the World War and when one of them in the German ranks was killed, she said: “I must go
on and sing to lighten, if 1 can, the sorrows of this suffering world”.

Nov. 18 . — President Roosevelt sails on the cruiser Indianapolis for Buenos Aires to deliver the opening address at
the Inter- American Peace Conference of 21 American republics, opening on December 1.

To relieve the food shortage in Alaska due to the shipping strike, Washington authorizes the Alaska Railroad
Company to operate a coastwise passenger, mail, and freight service.

Rexford G. Tugwell, resigns as Under-Secretary of Agriculture.

Nov. 20 . — Joseph E. Davies, wealthy socialite and former head of the Federal Trade Commission, is announced as
having been appointed Ambassador to Russia.

George Bronson Rea, American editor of the Far Eastern Review and propagandist for Japan, dies in Baltimore,
aged 67.

Nov. 24 . — Lucio Godino, one of the widely known Siamese twins, dies of pneumonia in New York, and surgeons
immediately perform an operation separating him from his brother Simplicio, the union reported to have consisted

only of a band of muscular tissue. Years ago the twins declined to have such an operation performed. They were
born 28 years ago in Sulat, Samar, and have been appearing in vaudeville in the United States. They were married to
the Motos sisters of Manila.

Nov. 25 . — Official sources in Washington are reported to have indicated that President Roosevelt will exclude
politics from consideration in the matter of appointing a successor to Frank Murphy, High Commissioner in the
Philippines.

Nov. 26 . — The strike situation is further complicated by masters, mates, pilots, engineer officers, and marine
engineers joining in the shipping strike demanding increased wages and an 8-hour day.

Nov. 27 . — The New York Herald Tribune states editorially that Germany could have done nothing more likely to
result in the United States turning to its former allies in the World War than by its alliance with Japan. “Could a
greater madness have been conceived? We can not be indifferent to an agreement which strengthens Japan in Asia
and is a clear step toward Japan’s dreams of expansion toward the Philippines and beyond’’.

On the way to Buenos Aires, President Roosevelt stops at Rio de Janeiro and delivers a stirring appeal for good will
among man before a huge and cheering Brazilian throng. Earlier in the day he told the Brazilian Congress “We can
not countenance aggression from wherever it may come. There is no American conflict that can not be settled by
orderly and peaceful means. The peace conference will provide an opportunity to banish war from the new world
and dedicate it to peace. We must be guided by a serene and generous view of our common needs.” In an address of
welcome, Raoul Fernandez, former majority floor, leader, stated that the Monroe Doctrine must be recognized as a
permanent force for peace on the American continent.

Nov. 30 . — Officials of the American Radio and Telegraphist Union and the Marine Firemen, Oilers, and
Watertenders Union announce their members have voted to join in the shipping strike.

Dec. 1 . — President Roosevelt meets in Buenos Aires with the greatest ovation ever given a foreigner. In his opening
speech he declares: “We in the Americas want to make it clear that we stand shoulder to shoulder in our final
determination that others who are driven to war madness or land hunger and might seek to commit acts of
aggression against us will find this hemisphere wholly prepared to consult together for mutual safety and mutual
good”. He emphasizes that the “welfare and prosperity of each of our nations depends for a large part on commerce”
and that the conference presents an opportunity for the peoples of the Americas to cooperate in establishing
economic unity. “Every nation in the world has felt the evil effects of recent efforts to erect trade barriers. It is no
accident that the nations which carried this process the furthest are those which proclaim the loudest that they
require war as an instrument in their policy. It is no accident that attempts at self-sufficiency led to falling standards
for their people and ever-increasing losses from democratic ideals in the mad race to pile armament on armament. . .
I am profoundly convinced that the plain people everywhere in the civilized world wish to live at peace with one
another. And still leaders and governments resort to war! Democracy is still the world’s hope. Our hemisphere has
finally come of age. We are assembled here to show the world that it is united.” The simple language and profound
delivery of the President is reported to have impressed the South Americans, accustomed to picturesque and fiery
speech.

Dec. 5 . — Simplicio Godino dies, reportedly from spinal meningitis, after previously recovering rapidly from the
operation severing him from his twin brother.

Dec. 8 . — The new $200,000,000 Treasury bond issue is oversubscribed more than four times although the interest
rate is only 2¥i%, the lowest rate ever offered on long-term bonds. The issue brings the total public debt to
$34,140,000,000.

Other Countries

Nov. 7. — An "artist” is reported to be engaged in the Sistine Chapel in painting flowing veils and draperies around
parts of Michelangelo’s nude figures which Pope Pius XI is said to consider offensive to Catholic morals. The
dauber, Biagie Biasatti, expects to complete his noble work by Christmas.

Nov. 9 . — A bill is introduced into the House of Commons, and later passed, prohibiting the wearing of party
uniforms in an effort to discourage fascist organizations.

Nov. 11. — Maj.-Gen. Kenji Matsumoto, military attache of the Japanese embassy in Washington, states at Singapore
that there is no hostile feeling for Japan among the American people and that there is no cause for war. Referring to
the Open Door policy, he states this “must be based on facts. ... 1 think that America will hereafter apply the
principle moderately. After all, the question is economic, and American interests in the Orient are minor. I do not
think the two countries will ever war over economic issues”.

Nov. 13 . — The Franco-Lebanon treaty is signed at Beirut and on December 1 the Franco-Syrian treaty will be
signed, it is reported, under which both of these French mandated countries, formerly Turkish, will become
independent republics. The treaties follow the Anglo-Iraq treaty of June 30, 1930.

Nov. 14 . — The Chamber of Deputies in Cairo by a vote of 202 to 1 1 approves the new Anglo-Egyptian treaty under
which Egypt will achieve complete independence within a period of from 10 to 20 years.

Nov. 16 . — Paul Patterson, Baltimore publisher now in Shanghai, states after a visit to Japan that a German -Japanese
anti-Russian treaty will soon be signed. The Japanese are trying to keep the negotiations secret and two Tokyo
newspapers were recently suppressed for hinting on the subject.

Captain Anthony Eden, British Secretary of Foreign Affairs, expresses regret that Germany has again abandoned
procedure by negotiation in favor of unilateral action in repudiating the German waterways clauses in the Versailles
treaty in spite of assurances given by Chancellor Adolf Hitler; not because important British interests are involved
but because action of this character must lead to further difficulties in the conduct of international relations. The
London Times calls Hitler’s action "unnecessary and theatrical”. Asked in the House whether the government has
received full satisfaction with respect to the Keelung, Formosa, incident, where British sailors were badly man-
handled by Japanese police, Eden states the matter is still under discussion.

Russia notifies Germany it is unable to accept the German protest against the arrest of a group of German nationals
recently arrested in Russia on charges of espionage and conspiracy.

The Spanish rebels, following an air attack, succeed in occupying several buildings in Madrid. Berlin newspapers
declare that Russian arms shipments to Spain are responsible for General Francisco Franco’s lack of success in
making a quick capture of the city.

A detachment of 3000 irregular troops from northern Charhar under Japanese leadership attack Hunkuerhtu and
4000 troops from Jehol, equipped with heavy artillery and air units, arrive at Pailingmiao.

Rear-Admiral H. E. Yarnell, new commander of the U. S. Asiatic Fleet, arrives in Singapore on a good will tour.
More than 20 British, Dutch, and American warships are anchored in the harbor.

Nov. 17 . — Sir Samuel Hoare, First Lord of the Admiralty, speaking at a press luncheon in London, states that "one
of the resounding prophesies that some people are making today is that a world war is inevitable. This is not the
view of His Majesty’s government. We refuse to accept this prophesy of despair, this dangerous and pathological
prophesy. . . We are determined to throw into the scales of peace all the influence at our disposal.”

Rumors are reported from London that an Anglo-Dutch understanding for mutual defense of their Far Eastern
possessions is imminent.

Berlin officials deny the existence of a German-Japanese alliance, but state such an agreement is “absolutely
conceivable”.

The Chinese people are reported to be contributing heavily for the support and comfort of the troops in Suiyuan
which are resisting the invasion of Mongol and Manchukuoan forces from Chahar.

Nov. 18 . — Italy and Germany are reported to have recognized the rebel government in Spain. Large parts of Madrid
are in flames, but the fighting continues while the civilian population cowers in cellars and subways. League of
Nations officials state that Italo-German recognition of the Spanish fascist rebel government is a violation of the
Covenant, Article X requiring that members respect the “territorial integrity and existing political independence of
all members of the League.”

French officials are reported to consider the rumored German-Japanese accord as a “dangerous move which may
lead the world into war” and to have stated that it would be a step toward dividing the world into “predatory and
non-predatory groups of nations”.

The Chinese Foreign Office spokesman states that in view of the military crisis in Suiyuan, regardless of Japanese
diplomatic professions of ignorance and innocence regarding Japanese inspiration and assistance, the Sino -Japanese
negotiations can not continue as it shows the “uselessness of relying on Japanese civilian assurances while their
military freely embarks on a different course”. It is reported that Japanese soldiers are arriving at Pailingmiao
disguised in Mongolian garb.

Nov. 19 . — Relentless fascist aerial “punishment” continues to spread untold death and damage in Madrid, and the
streets are filled with bewildered, hysterical people seeking underground shelter. Eden throws the House of
Commons into a tumult when he states that “some other governments” are more to blame for intervention in Spain
than Italy or Germany, members interpreting this to mean Russia chiefly. Franco’s talk of blockading Spanish ports
results in the statement in “informed quarters” in London that Britain will regard any interference with its ships as
piracy.

Nov. 20 . — The German Foreign Office states that “nothing has happened since our last denial that such an
arrangement (between Germany and Japan) exists”. It is reported from Moscow that the Russian Ambassador at
Tokyo has informed the Japanese Foreign Office that Japanese explanations of the agreement between Japan and
Germany are unsatisfactory and likely to prejudice Russo-Japanese relations. In his explanation, the Japanese
Foreign Minister states that it is only a pact to fight communism. Russia declares it can not understand why the
German government needs the help of Japan to fight communism in its own country, and vice versa

General Franco informs Britain that the “scandalous traffic” in arms and munitions in Barcelona, largely carried in
Russian and Spanish ships, he will do everything to prevent, if necessary, destroying the port, and he therefore
warns all foreign ships to abandon the harbor and advises all foreigners to leave the city. Britain has unofficially let
it be known it will tolerate no interference with legitimate British interest. The Giornale d’ Italia states that Italy and
“other strong European nations” have decided to prevent the establishment of a Red Republic in Spain, and hints
that Italy will prevent Soviet steamers from reaching Spanish ports.

Nov. 21. — Izvestia, official Russian newspaper, states that the German-Japanese agreement is a “mobilization of the
forces of war” and demands organization of the world’s forces of peace to counteract it. “The alliance increases the
Japanese menace to the United States and Britain as well as the German menace to all of Europe. The alliance is not
a plot against the Soviet alone, but against the whole world”. Russia informs Japan that owing to "the bad
atmosphere” created by the German-Japanese military alliance, it will be unable to sign the new fishing agreement
“until the situation is cleared up”. The old agreement expires at the end of the year. The German Ambassador to
Japan states that no agreement has been signed between Germany and Japan and emphasizes the great value
Germany places on friendship with China.

Baron General Sadao Araki is quoted as having stated in a magazine article that communism and fascism menace
the world. “Japan as decade ago sensed the danger of communism and succeeded in wiping it out. Our salvation

basically was a high ideology and a devotion to the imperial family. Nations without an ideology are threatened by
radicalism. The closest example is the Chinese Republic, where supposedly Democracy reigns. But, lacking an
ideology, China is undermined by communist trends which are factors of instability threatening Far Eastern peace. . .
Lack of ideology in any country will make it suffer as Spain is suffering today and perhaps France will suffer
tomorrow. . . . Germany, Italy and Soviet Russia developed ideologies when dictatorships were substituted for an
early-formed democracy. 1 do not agree that dictatorships as a substitute for democracy is healthful. The League of
Nations is a failure of democracy. It has neither public credit nor world confidence. . .”

Restaurants in Madrid put up “No more food” signs, and homeless and exhausted women and children are huddled
in doorways weeping from hunger.

Nov. 22 . — With the government still in firm control of Madrid despite two weeks of bombardment, an immediate
and compulsory evacuation of all the civic and noncombattant populace is ordered to prevent unnecessary loss of
life and thousands of taxicabs are requisitioned for the purpose. The Russian Ambassador to Spain states, “I am
profoundly moved by the fight of the Spanish people on behalf of liberty. The barricades of Madrid are a wall
against a form of savagery which shows no respect for humanity. Foreign planes, manned by mercenaries, kill
women and children and destroy works”. Officials in Madrid state that the Italian and German recognition of the
rebels is in effect a declaration of war on the Spanish Republic. Britain, France, and Russia all indicate a firm stand
against the threatened rebel blockade of Catalonia, while Italy and Germany are believed to be planning to aid the
blockade “unofficially”. The British Cabinet decides formally not to grant blockade rights to either the leftists or the
rightists in Spain as “international law does not recognize belligerants in a civil war.” It is stated authoritatively in
Rome that Italy “will not tolerate a new center of Red revolution in the Mediterranean and that any such event
would force Italy, Germany, and lapan from a passive to an active anti -communist state.

A Russian court sentences E. M. Strickling, a German engineer, and eight Russians to death, they having been found
guilty of terrorism and sabotage, specifically having been charged with concentrating gas in a coal mine, causing an
explosion which killed several workers. The German Ambassador in Moscow informs the Russian government that
the charges against Strickling are incredible and demands his immediate pardon.

The threat of a general strike in lapanese-owned cotton mills in Shanghai, Tientsin, and Tsingtao grows as strikes
which have been going on for some time, increase in number. Some fifty crewmen of the Japanese steamer Seikyo
Maru from Keelung, Formosa, arriving at Foochow, China, attack without warning ten unarmed Chinese customs
officials and beat them into insensibility with iron bars and hammers, afterwards landing a large amount of
merchandise without paying duty. Chinese claim that the local Japanese consul was aboard the steamer and made no
effort to control the assailants of the Chinese officials who were only doing their duty. The Chinese Foreign Office
spokesman admits that the negotiations with Japan are on the verge of suspension. “There is now nothing to talk
about. All talks have been rendered useless in view of the Suiyuan invasion.

Nov. 23 . — The Spanish government charges that the submarines which attacked the cruiser Cervantes and other
Spanish ships at the entrance to Cartagena harbor, must have been foreign as the rebels do not possess submarines.
One torpedo hit the cruiser and did some damage. Other torpedoes were fired at the Mendez Nunez by a submarine
of a different type. Reported that Washington has ordered the closing of the U. S. Embassy at Madrid and has
ordered the staff and a number of refugees in the Embassy to Valencia for safety.

The Chinese Foreign Office protests to Japanese diplomats the bombing of Chinese positions in Suiyuan by
Japanese airplanes.

Nov. 24 . — Three more Germans are arrested in Russia. Reported that Germany will sever relations with Russia if
Strickling is executed and that the German Ambassador to Britain has sounded Premier Stanley Baldwin regarding
Britain’s possible adhesion to the German-Japanese alliance against communism, but that Baldwin rejected the idea
and told him that a Russo-German breach would seriously prejudice an attempt to establish European peace.

Eden tells the House of Commons that the Keelung incident will have to be “cleared up” before the British and
Japanese navies will again exchange courtesy visits with each other. He states that the Japanese government sent an

interim reply to the British protests, expressing Japan’s deep regret that such an unpleasant incident should have
occurred and declaring that further inquiries were being made, but adds, “I am unable to regard the incident as
closed”.

Nov. 25 . — Foreign Minister Baron Joachim von Ribbentrop for Germany and Ambassador Kintomo Mushakoje for
Japan sign in Berlin an “anti-communist” treaty under the terms of which the two countries “agree mutually to
inform each other concerning the activities of the Communist Internationale and to consult concerning measures to
combat this activity and to execute their measures in close cooperation”. Other nations will be invited to join the
pact which is for 5 years. Each nation agrees not to sign any international agreement without first consulting the
other and each will abstain from any measures which might put the other at a disadvantage in event of a war with a
third power. The agreement provides for technical assistance in all military affairs, which is interpreted to mean that
Germany is obliged to aid Japan in aviation matters and chemical warfare problems and in the production of arms.
The Japanese Foreign Office spokesman states that the pact is against communism because this “threatens world
peace”, and calls attention to the fact that the Comintern Congress in Moscow last year made it clear that its future
objectives would be Germany, Japan, and Poland, and that it also resolved to support the Chinese communists. “The
agreement, however, is not directed against the Soviet Union or any other specific country”. The move is disliked in
London and concern is expressed in China. According to Rome reports, however, Italian adherence to the new pact
is imminent. A Department of State official at Washington declares that the United States has only an “academic
interest” in the matter.

Germany protests to the Norwegian government against the award of the 1935 Noble peace prize to Carl von
Ossietsky, well known German pacifist, who was released only a week ago after three years in a Nazi concentration
camp. The award is described in the German press as a “shameless provocation and insult to the new Germany.”

A Spanish rebel general states in a radio broadcast from Seville that the insurgents have sunk and will continue to
sink ships trying to enter Spanish ports held by the government. Reported that a Norwegian and a Greek steamer
with a food supplies were stopped and compelled to discharge their cargos in rebel ports “by order of the Burgos
government”. Various British and French warships move into the war zone.

The House of Lords approves the Anglo-Egyptian treaty, approved by the House of Commons yesterday. The
opposition as well as the majority supported the measure.

In sympathy with the American shipping strike, French dockworkers at Havre refuse to unload two American ships
there.

Nov. 26 . — The German- Japanese pact is strongly criticized in Britain as cutting across the British policy of
opposition to the formation of blocs in international affairs. “Regettable and unnecessary” says the London Times.
According to Genevieve Tabouis, famed French political writer, the agreement includes secret clauses providing for
zones of influence, allotting Borneo to Japan and Java and Sumatra to Germany, Germany agreeing in the mean time
not to contest Japanese possession of the former German islands in the Pacific. Reported from Moscow that
documentary proof is available of secret clauses in the pact that have not been published, and that Russia has
ordered a census of all Germans in the country to be ready in three days. The cool reception given to the pact is
reported to have caused a “certain amount of disappointment” in Berlin. Germany explains to China that the pact is
not directed against China.

Reported that 2000 Japanese soldiers have arrived to re-enforce the Manchukuo and Mongol irregulars in Suiyuan.

Nov. 27 . — Announced by Russia that a new railroad paralleling the Trans-Siberian has been completed with its
terminus at Konsomolik. G. M. Krutuff, Premier of the Far Eastern Soviet, declares, “Our policy is one of peace, but
we warn that if an attack is made, we will deliver a crushing blow. We will not surrender an inch of our Far Eastern
territory.”

Reported that the Chinese government will resist any pressure brought to bear to induce it to join the German-
Japanese pact, as it is not concerned with communism beyond its own borders and the question of communism
within China is its own affair, concerning which it does not need to seek an understanding with a third party.

The general in command of the government forces in Madrid states, “We will drive the insurgents from the gates of
Madrid by Christmas”.

Sir Basil Zaharoff, “mystery man” of the armament business, dies at Monte Carlo of a heart attack. He was born in
Turkey in 1850.

Nov. 28 . — Maxim Litvinov, Soviet Commissar of Foreign Affairs, charges that a secret military alliance exists
between Germany and Japan to launch a war that will spread to all continents. He also denies that Russia is trying to
set up a communist government in Spain, “although some simpletons believe this”.

The Japanese Minister of Finance states that the record budget of 3,041,000,000 yen, just approved by the Cabinet,
will require a new national loan of around 1,000,000,000, and that he hopes to raise more revenue by a revision of
the taxation and tariff systems and by increasing monopoly prices. The army and navy will get 1,409,000,000. Less
than 5 % of the total appropriations is for education.

The Spanish government claims major victories in the north, endangering the rebel strongholds at Grado, Victoria,
and Tolosa.

Nov. 29 . — A bloody battle is reported raging in Asturias with neither side asking or giving quarter. Reported that
rebels have had to alter the disposition of their troops about Madrid in order to meet various government threats.
Over a fourth of the city has been destroyed and is uninhabitable, and renewed bombing kills hundreds of people
who run through the streets in terror. In the fields, cats and dogs feed on the bodies of the slain. Reported that the
rebels bombed Cartagena setting fire to the arsenal and the port works and sinking three government warships.

China’s famed 29th Army is ordered to move eastward from Kalgan in preparation for action against Manchukuoan
and Mongol invaders after the Manchukuoan Foreign Office and the Kwantung (Japanese) Army Headquarters in
Manchukuo issued a joint statement declaring that if the situation in eastern Suiyuan and other North China points
“threatens to jeopardize peace in Manchukuo, the authorities would be obliged to take adequate action.”

Nov. 30 . — Reported from Paris that Foreign Minister Yvon Delbos will announce Friday the conclusion of a
tripartite military defense accord between France, Britain and Belgium, and that aggression against Britain or
Belgium would result in the immediate mobilization of France’s entire fighting force. Eden, however, dampens
French hopes of a military accord when he states before the House of Commons that “His Majesty’s government
explicitly deprecates any tendency to divide the world into conflicting camps. Our policy continues to be to promote
friendly relations between all nations”. He states that the government has received official assurances from Berlin
that no secret military clauses exist in the German -Japanese treaty and that it has no information that Italy has
entered into an agreement with Japan.

Premier Benito Mussolini and Ambassador Y. Sigimura sign a treaty in Rome mutually recognizing Manchukuo and
Ethiopia, the United Press reports. It is understood that Italy is willing to join the German Japanese pact, but that
Italy wants to continue its membership in the League and has thus to keep the friendship of France and Britain.

It is stated in Chinese circles in regard to the reported imminent Italo-Japanese agreement for joint recognition of
Manchukuo and Ethiopia, that this would be another slap in the face for the League and that Italy, besides risking
the loss of China’s friendship, would gain nothing in Manchukuo while it would lose in Ethiopia where the Japanese
would attempt eventually to dominate the textile industry.

Dr. Kurt Schuschnigg, Austrian Premier, tells Hungarian Premier Daranyi who suggested that the two countries join
in an anti-communist bloc, that Austria does not desire to create bad feeling in Britain and France and that
communism is not a real danger in Austria.

Dec. 1 . — “Reliably reported’’ in Paris that Britain and France have concluded a treaty pledging to aid each other if
either is attacked. Premier Leon Blum tells the press that a general world war can be avoided if the three great
democracies, Britain, France, and the United States, cooperate to prevent it. “Stories published abroad that France is
on the verge of a revolution are wholly unfounded,” he states. “I am merely giving France a ‘New Deal’ “.

The Spanish government states that the “striking power of the rebels has been greatly weakened and possibly
broken” in a crucial battle which the government forces won, and it is stated that two loyalist armies are driving
toward Burgos, the rebel stronghold, the government having suddenly changed from the defensive to the offensive.

Chinese forces occupy Pailingmiao, former capital of Inner Mongolia, and the Japanese are reported to be
withdrawing their military missions in the region.

Dec. 2 . — Eden tells House of Commons that Britain is negotiating a defensive alliance with France and Belgium
under which England’s obligations would approximate as closely as possible those of the Locarno Treaty.

France announces plans for a huge naval and air program \in answer to increased construction in Germany and Italy.

The Dutch Foreign Minister in a speech before the Second Chamber states that reports that Germany and Japan are
planning to partition the Netherlands Indies are absurd. He says Japan has already officially denied the rumor and
points to the friendly relations existing between Holland and Germany.

Rebels rain tons of bombs upon Madrid in four raids within 24 hours, killing hundreds of men, women, and children.
Premier Francisco Caballero states at Valencia that a “European war is now being fought on a small scale on
Spanish terrain and that unless the League takes steps to permit the legitimate government of Spain to purchase arms
and supplies abroad, the war will inevitably spread to the rest of Europe”. He declares the rebels would be subdued
within a few weeks if they were not receiving direct assistance from Germany and Italy. The Spanish Foreign
Minister telegraphs President Roosevelt on the occasion of the opening of the Inter-American Peace Conference at
Buenos Aires, calling his attention to the bonds uniting Spain and America and to the declaration of 1932 of 19
American nations against the recognition of territory acquired by force of arms, pointing specifically to the situation
in the Balearic islands, “now occupied by foreign troops.”

China issues a strong warning against any attempt on the part of Japan to interfere in the fighting in Inner Mongolia
where Mongol and Manchukuoan irregulars are attempting to invade Suiyuan.

The British press at last breaks its silence on a matter which has filled the American press for weeks — King
Edward’s rumored desire to marry Mrs. Wallis Warfield Simpson, former Baltimore, Maryland, society woman,
recently divorced for the second time, a marriage reportedly opposed by British political leaders and the clergy.

Dec. 3 . — Chinese troops stop another offensive of irregular Mongol and Manchukuoan troops supported by heavy
artillery and bombing planes at Pailingmiao. Japanese marines land and occupy strategic points in Tsingtao
following a lock-out of 3,000 striking workers from Japanese mills which threatens to affect 23,000 Chinese
workers. The Japanese claim the Chinese municipal authorities are responsible because they did not suppress strike
disturbances. They searched the headquarters of the Kuomintang and other Chinese offices and seized three
prominent Chinese whom they are still holding. Foreign Minister Chang Chun without ceremony summons Japanese
Ambassador S. Kawagoe to the Foreign Office and protests against the landing, demanding (1) immediate
withdrawal, (2) return of the documents seized when the Japanese raided the Kuomintang office, and (3) release of
the Chinese officials arrested. Chang further informed Kawagoe that “we are not prepared further to discuss any
Sino-Japanese issue until Japanese participation in the Suiyuan crisis is withdrawn.

Representatives of the 21 republics of the western hemisphere begin actual work on the American peace program
under the chairmanship of Carlos Saavedra, Argentine Foreign Minister and winner of the 1936 Nobel peace prize.
The United States is represented on the committee by Secretary of State Cordell Hull and his assistant Summer
Welles, and A. W. Weddell, Ambassador to Argentine. President Roosevelt, after opening the conference, is on his
way back to the United States and today is received with great popular acclaim at Montevideo, Uruguay.

Dec. 4 . — Premier Stanley Baldwin tells the House of Commons that “in view of the widely circulated suggestions of
certain possibilities in the event of the King’s marriage, I think it advisable for me to make a statement. Suggestions
have appeared in the press yesterday and today that if the King decided to marry, the wife need not become Queen.
These ideas are without legislative foundation. There is no such thing as a so-called morganatic marriage in our law.

. . . She herself would enjoy all the rights and privileges of her status which by positive law and custom are attached
to that position. Her children then would be in direct line of succession to the throne. The only possible way this
result could be avoided would be by legislation dealing with the particular case. His Majesty’s government is not
permitted the introduction of such legislation, and moreover matters to be dealt with are the common concern of the
Commonwealth as a whole, and as such the change would not be effected without the assent of all the Dominions, I
am satisfied. . . that this assent would not be forthcoming. . . .” Parliament strongly backing him, Baldwin after the
session goes to Fort Belvedere where he is believed to have informed the King that the Cabinet would reign rather
than capitulate to the King’s wishes. The Archbishop of Canterbury also calls. In the meantime, the King sends Mrs.
Simpson to seclusion in France, placing her in one of his cars for the journey to the coast where she takes a boat for
the continent accompanied by one of the King’s secretaries and a bodyguard. It is believed the King may accept the
challenge of the Cabinet by forming a cabinet of his own headed by Sir Winston Churchill who has offered to form a
cabinet if Baldwin resigns. Josiah Clement Wedgwood, laborite member of the House of Commons, lays a motion
on the table providing the coronation of Edward should proceed according to schedule regardless of the possible
refusal of the Archbishops of Canterbury or of York to officiate. “The chief calamity which must be avoided is the
abdication of our beloved sovereign. If a general election follows on this question, the country’s reply will be on the
side of the King.” (London masses are reported to support the King in his difference with the Cabinet and the
church. Crowds gathering in front of Buckingham Palace cheer for “the King and the new Queen.”) It is rumored,
however, that the King, angered by the attitude of the Cabinet, will abdicate within 48 hours unless a compromise is
reached.

Source : University of Michigan

Hartendorp, A. V. H. (Ed.). (1937). News Summary. Philippine Magazine, 34 (1), 3-7; 52. Retrieved

from https://archive.org/stream/acd5869. 0038. 001. umich.edu#page/n5/mode/2up .

News Summary, Philippine Magazine: December 17, 1936 - January 13, 1937

News Summary
The Philippines

Dec. 17 . — Reported in the press that President Manuel L. Quezon has invited Cardinal Dougherty, papal legate to
the 33rd International Eucharistic Congress, to be a guest at Malacanang Palace during his stay here.

Dec. 18 . — President Quezon returns to Manila from a vacation trip to Hongkong and Canton. At a press conference,
he states in reply to a question of William H. Chamberlin of the Christian Science Monitor that “the idea of
neutralization for the Philippines. I must confess, has lost its attraction for me. For the time being, at least,
neutralization seems meaningless. Unless within the next four or five years the attitude of the great powers to their
accords changes. I can not believe that such a neutralization treaty would mean much to the Philippines. I would not,
however, object to a neutrality agreement, provided it were merely a declaration of principle to the effect that the
Philippines would be considered as neutral. This would not involve a guarantee of this neutrality. Such guarantees
by any power might furnish the excuse for interference. A treaty of such a character as suggested would not be
incompatible with the retention by the United States of naval in the Philippines. Naturally, the areas which the
stations embraced would be outside the normal effectiveness of such an agreement. What other nations would wish
or would suggest in this connection, naturally, I can not know ... If coincident with the establishment of such naval
bases in the Philippines there were established some special trade relations with the United States indicative of
future close association, such retention would not be unreasonable. It would be, indeed, not only in the interest of the
Philippines but also of the United States, since it would mean the protection of established trade routes. If, on the
other hand, the United States undertook no such special relationship, there would be no justification for the retention
of naval bases here. Nevertheless, the fixed attitude of this government toward the naval base question must come
up at a later date when the proposals are actually made and we are ready to determine policy”.

Dec. 19 . — In a report to the Secretary of War, President Quezon places the number of casualties in the recent
Cagayan Valley flood at 74 deaths with 200 missing and the number of sufferers a 50,000. Damage to property and
crops is estimated at P4,500,000. He expresses appreciation of the cooperation of the U. S. Army and the American
Red Cross in relief measures.

President Quezon names Assistant Director Florencio Tamesis Director of the Bureau of Forestry. Arthur Fischer,
for many years head of the Bureau, becomes adviser to the President on natural resources.

Dec. 20. — Dr. Alejandro Albert, until recently Under-Secretary of Public Instruction, dies aged 67. He was a
member of the first Malolos Congress at which independence was proclaimed. He founded both the now defunct
Liceo de Manila and the Manila College of Pharmacy. He was appointed Assistant Director of Education in 1917
and later that same year Under-Secretary.

Dec. 23 . — Jorge B. Vargas, local sugar administrator, imposes a fine of P205, 104.90 on ten centrals which exceeded
their quota by an aggregate of over 4,000,000 short tons, and announces that the government will also confiscate the
sugar without prejudice to the prosecution of all those who are found to have violated the sugar limitation act with
fraudulent intent.

Dec. 28 . — High Commissioner Frank Murphy after interviewing President Franklin D. Roosevelt and State
Department officials, sends President Quezon a message stating that Washington officials believe his presence
indispensable and “that it is hoped you can arrange to be present”, and President Quezon is reported to have replied
that he expects to be in Washington early in March for a preliminary and informal conference. The State Department
issues an announcement expressing optimism for satisfactory trade arrangements between the United States and the
Philippines for a “constructive program of adjustments ... in line with the general commercial and other policies of
the United States as regards future trade relations between the United States and the Philippines and as regards the
various economic and related adjustments which may be called for in connection with Philippine independence.”

The National Development Company as a private corporation is dissolved by its Board of Directors and a new
public corporation of the same name is established with all the assets and liabilities of the old company transferred
to the new, and President Quezon announces the designation of Gregorio Anonas as the acting head of the concern.
The new company has much broader powers than any private corporation, may hold vast tracts of land, and “may
engage in commercial, industrial, mining, agricultural, and other enterprises which may be necessary or contributory
to the economic development of the country or important in the public interest”.

Dec. 29 . — Malacanang announces that Dr. H. Foster Bain, former head of the U. S. Bureau of Mines, has accepted a
position as technical adviser in the newly created Bureau of Mines here.

Dec. 30 . — Reported that a Japan-Philippine Fishing Company will be established with offices in Manila and a
cannery in Zamboanga, to be capitalized at 500,000 yen (P300.000), Philippine interests to supply 61% of this and
Japanese the rest. A Japanese staff would initiate the work and all machinery and ships would be supplied by them.
The incorporators are Miguel Unson, L. R. Aguinaldo, Vicente Madrigal, (the late) Wenceslao Trinidad, Ramon J.
Fernandez, Yasaku Morokuma, and Yoshi Karikoma. Members of the Assembly criticize the development as
contrary to the spirit of the Constitution which is to restrict the exploitation of the national resources to Philippine
citizens.

Richard C. MacGregor, ornithologist, for many years Managing Editor of the Philippine Journal of Science and
chief of the division of publications of the Department of Agriculture and Commerce, dies, aged 65. He came to the
Philippines in 1901 and joined the Bureau of Science in 1903.

Dec. 31 . — Announced that President Quezon has appointed Marcial Kasilag, who was recently made Director of
Public Works, Commissioner of Mindanao and Sulu with headquarters in Lanao, and that Assistant-Director Vicente
Fragrante has been appointed Director. The old Bureau of Non-Christian Tribes ceases to exist today and the
retirement of Judge Teopisto Guingona, Director, also takes effect.

President Quezon conditionally pardons 22 prisoners and paroles 83 more, among the former being Crisanto
Evangelista, communist leader, who was exiled to the Mountain Province some years ago.

Japanese merchandise to the value of P10,000, offered by the government of Formosa to the Philippine government
for the relief of flood sufferers, is landed at Aparri by a Japanese steamer, and a delegation headed by S. Agoyasi,
prefect of Takao province, will formally present the gift. Malacanang officials previously indicated that a cash gift
might be preferable since its delivery would not involve sending a steamer, but that the State Department would be
asked to give the necessary permit for the steamer to call, which request was granted.

Jan. 3 . — The first 20,000 trainees, drawn from among the 138,000 registrants throughout the country, are scheduled
to begin five and a half months of military instruction in 128 training centers.

Dr. J Murray Barlett, first President of the University of the Philippines, and his wife, arrive in Manila for a visit.

Jan. 4 . — As a New Year honor, the Chinese government awards President Quezon the “Order of the Brillant Jade”,
rarely bestowed and almost exclusively on the heads of foreign governments.

Market vendors throughout the country protest against the new internal revenue taxes — the 1-1/2% sales tax and the
increase in the privilege tax from P2.00 to P4.00 (sales under P200.00 monthly are exempt), and Manila meat
dealers are again on a strike against the increase of the city slaughterhouse fee from 2 to 5 centavos a kilo.

Celedonio Salvador, recently made Superintendent of Manila City Schools, is appointed Assistant-Director of the
Bureau of Education.

Jan. 5 . — According to press dispatches, the United States Supreme Court has reversed a decision of the Philippine
Supreme Court, the American body ruling that the retirement gratuity act of the Philippine Legislature is not an

appropriation act and therefore that the veto of section 7 of the law by the Governor-General was unconstitutional.
The ruling is contained in a decision allowing the claim of Juan Bengzon, retired Lingayen justice of the peace, to
retirement gratuity. Some fifty other justices will be benefited by the decision. The local Supreme Court upheld the
veto of section 7 declaring that the chief executive of the Philippines is an integral part of the law-making power and
that his disapproval of a bill in the exercise of his veto power is essentially a legislative act, and pointed out that the
former organic law granted the chief executive the power to veto any item or items in an appropriation act.

Jan. 8 . — Reported that Philippine gold production for 1936 totalled P44,421,435, nearly PI 1,500,000 more than the
preceding year.

Announced that Prudencio Langcauon, Division Superintendent of Schools of Iloilo, has been appointed
Superintendent of City Schools (Manila).

Jan. 9 . — The papal mission to the 33rd International Eucharistic Congress to be held in Manila from February 3 to 7,
leaves Rome with the Pope’s message to the Congress “to pray for the reestablishment of peace in a world which
needs it badly”. The message is contained in a gold and silver casket, the gift of the Pope to the Congress. The
mission is headed by Cardinal Dougherty of Philadelphia, papal legate.

President Quezon accept the resignation of Dr. Jacobo Fajardo, Director of the Bureau of Health, "in the best
interests of the health service”, declaring, however, that the charges against him affecting his honesty were not
proved and that he had filed his resignation before his investigation had been instituted.

The beautiful new Los Tamaraos Polo Club in Paranaque is inaugurated and a game between the Elizalde Team and
the Hunter River Team of Australia results in a score of 6 to 5 in favor of the Elizaldes.

Jan. 10 . — Wang Ching-wei, former Chinese foreign minister, visits Manila for a day on his way back to China from
Europe and is a luncheon guest at Malacanang. He has been mentioned as the probable next head of the Chinese
government.

Jan. 12 . — President Quezon tells Manila meat dealers and market vendors at separate conferences that they must
abide by the new tax laws, otherwise the government will step in to protect the public interest. He states that the
meat dealers’ strike is a defiance of the government and that until the law is complied with he will not entertain any
petition for tax revision. He also instructs the Secretary of Agriculture and Commerce to gather 2,000 heads of cattle
for slaughter beginning tomorrow if the strike continues. Various members of the Assembly accuse the meat dealers
of profiteering, prices having gone up over 100%.

Dr. Eugenio Hernando, Acting Director of the Bureau of Health, is appointed Director.

Jan. 13 . — The Board of Regents of the University of the Philippines approves the appointment of Dr. Antonio G.
Sison as Dean of the College of Medicine and Director of the School of Hygiene. Due to the recently agreed
separation of the administrative and medical work in the Philippine General Hospital, Dr. Sison will be in charge of
the medical work at the Hospital, but will not be in general administrative charge, as was the former Dean and
Director, Dr. Fernando Calderon.

The United States

Dec. 16 . — Acting Secretary of State Robert W. Moore announcing the creation of a new division of Philippine
affairs states that neither particular political nor economic problems are responsible for the move, but solely the
desire to coordinate the administration of affairs concerning the Islands. Francis B. Sayre, Assistant Secretary of
State, declares that “the gradual shifting of Philippine matters from the War Department to the State Department
seems inevitable as the date of independence nears” and that the Department has been increasingly involved in
Philippine matters by preparations for the economic conference — which will be “a constructive and not a ‘horse-

trading’ affair". J. E. Jacobs with a background of long experience in the Orient and in the Department has been
designated head of the division. The action meets with approval in Philippine government circles.

Dec. 19 . — Vicente Villamin, Philippine economist states in Denver that American farm organizations are becoming
“more reasonable” in their attitude toward Philippine agricultural production. The worst enemy of Philippine sugar,
he declares, is the Cuban sugar industry. “Those gentlemen hold militant views against Philippine-American
relations.”

Dec. 20 . — The “American Foreign Policy Association" in a “report on the progress of the Philippines" written by
David H. Topper, made public today, declares that the national defense plan “amounts to a covert conspiracy to keep
the United States in the Islands”, the plan being “to strengthen the military power in the western Pacific in the event
of a war with Japan”. The report admits that “potential threats that Japanese economic pressure will envelope the
Islands in conjunction with the incipient commercial expansion toward the equator are indeed great". As to the
Commonwealth Constitution and government, the report declares that “given an advanced electorate and a strong
two-party system, the Constitution doubtless provides a sound basis for a democratic government, but in the light of
existing conditions it lends itself to the establishment of an essentially legal dictatorship”. The report urges that
Philippine-American trade conversations be held at an early date to diminish the “potential hazard which might
break down the Commonwealth" and that the Commonwealth be given trade autonomy so it may conclude trade
agreements with other countries.

Dec. 21. — Walk-outs are reported in a number of automobile equipment factories, said to be preliminary to a general
strike in the steel and automobile industries.

Dec. 22. — Sen. M. E. Tydings denies that the Philippine defense program is a “covert conspiracy”, declaring that the
Commonwealth government in adapting the defense program of Gen. Douglas MacArthur to its needs was acting
“without either the sanction and approval or the disapproval of the United States government. It is a purely local
matter with the Filipinos. They like others seem to feel that when independence is an accomplished fact they will
need some sort of defense”.

Dec. 23 . — Secretary of War Woodring reports to President Franklin D. Roosevelt that “in view of the generally
favorable auspices surrounding its beginning, there appears every reason to predict a successful future for the
Commonwealth government." He praises President Manuel L. Quezon and the spirit of cooperation prevailing
between representatives of the United States and Commonwealth governments. He points out that the inauguration
of the Commonwealth “did not change the sovereign relationship between the United States and the Philippines but
greatly broadened the autonomous powers of the insular government as regards local affairs.” He states the United
States “proposed to help the Filipinos to readjust themselves for national defense during the transition period" in
relating the dispatch of the military advisory commission headed by General MacArthur.

Dec. 24 . — Secretary of Labor Frances Perkins telegraphs labor leaders in San Francisco that the public interest
demands an early peace and urges greater cooperation in negotiating for a settlement of the long-drawn shipping
strike.

Dec. 25 . — Arthur Brisbane, famed editor and columnist, dies of a heart attack, aged 72.

Dec. 26. — Sen. W. H. King states that he favors an agreement as soon as possible among world powers guaranteeing
the independence of the Philippines and that he is opposed to the establishment of a United States naval base in a
future independent Philippines because it is a “potential danger spot”. “In the event the Philippines is attacked or
becomes the victim of aggression of some foreign power after full independence, I would not favor the United States
fighting for them. We would have to accept whatever developed as a fait accompli as in the case of Ethiopia”.

Dec. 28 . — The State Department announces that it has had to issue licenses to a dealer to export $2,777,000 worth of
second-hand airplanes and parts to Bilbao, presumably for Spanish loyalist forces, as the neutrality law permits the
shipping of arms to countries engaged in civil war and the dealer persisted in his demands despite representations
that it would be embarrassing to the government to issue such licenses at the present time.

A number of American airmen having gone to join Spanish government forces. Rep. S. D. Reynolds states he will
call the attention of the State Department to the law prohibiting Americans from enlisting in a foreign war under
penalty of a year in prison or a $3,000 fine. Sen. W. E. Borah states he is studying means of disenfranchising such
persons.

Dec. 29 . — In a press conference. President Roosevelt bitterly denounces child labor, long hours, and starvation
wages in American industry, and calls attention to the break-down in maximum hours and minimum wage
limitations since the death of the NRA, indicating that he thinks federal action is necessary. He also announces his
support of legislation that would apply the arms embargo law to nations suffering from civil strife.

Sen. K. Pittman states he hopes to rush a bill through Congress which convenes on January 5 applying the arms
embargo to Spain. Some European commentators state that the United States action in granting license for shipment
of airplanes to Spain will defeat European efforts to make the non-intervention agreement effective. Others praise
the United States for the publicity given to the matter. Robert Cruse, the business man who recently demanded and
obtained license to ship airplanes to Spain, states that the planes are not designed for conversion into fighting planes
and are not intended for military purposes.

After a call on General Malin Craig, Chief of Staff, Frank Murphy, retiring Philippine High Commissioner, tells the
press: “I am interested in furthering the security of the Philippines economically, politically, and in every other
way”. “It is reported, however,” adds the Associated Press, "that Murphy favors the avoidance of entanglements
over the problem of the defense of the Philippines once independence has been granted”.

Dec. 30. — Gen. Hugh S. Johnson states that "the thought that Japan would certainly in all circumstances respect a
convention neutralizing the Philippines is somewhat like the idea a cat would respect a convention to neutralize
mice”.

Jan. 3 . — Reported that farm lobby groups will make an effort to boost the present 3 -cent excise tax on coconut oil to
6 cents and to apply it to all imported vegetable oils.

Jan. 5 . — The 75th Congress convenes at Washington. Rep. William B. Bankhead of Alabama is elected Speaker on
a strict party vote.

The State Department issues licenses to another exporter of arms to Spain valued at $4,500,000 and consigned to the
Spanish Ambassador to Mexico now on his way to Washington.

Jan. 6 . — In his message to Congress, President Roosevelt calls on the courts to do their part “in making democracy
successful within the framework of the Constitution. . . The vital need is not alteration of our fundamental law but an
increasingly enlightened view in reference to it. The process of our democracy must not be imperilled by denials of
essential powers to a free government”. He does not specifically mention the Supreme Court in his frank criticism,
but adds, “because all of us believe that our democratic form of government can cope adequately with modern
problems as they arise, it is patriotic as well as legal for us to prove that we can meet new national needs with new
laws consistent with the historic constitutional framework which is clearly intended to receive liberal, not narrow
interpretation”. He asserts that the “broad objectives of the NRA were sound” and adds, "the statute NRA has been
outlawed, but the problems have not; they are still with us”. Among “far-reaching problems”, he includes housing,
aid to tenant farmers, the broadening of social security, the relief of unemployment. He declares that federal laws
need to supplement state laws to provide “decent conditions and adequate pay for labor and a just return to
agriculture”. He states that the Inter-American Peace Conference at Buenos Aires has improved existing peace
machinery and has “sent forth a message on behalf of all democracies of the world to those nations which live
otherwise”. “It is high time for democracy to assert itself’, he declares. Shortly before the appearance of the
President, the ceremony of counting the electoral votes was completed and it was announced that President
Roosevelt and Vice-President John Nance Garner were reelected by 525 votes to 8 for the Republican candidates
Alfred M. Landon and Frank Knox.

Congress at the request of President Roosevelt adopts a resolution permitting him to apply the arms embargo to
countries engaged in civil war, but in the mean time, a Spanish freighter leaves New York for Cartagena with a
cargo of airplanes and munitions, foodstuffs, and medicines for the Spanish government.

Shipping strike leaders protest to the Mayor of San Francisco that "thugs and gun-men are attacking union pickets
nightly” and accuse ship owners of seeking to use violence to break up the strike.

Jan. 8 . — President Roosevelt announces that the immediate construction of two new battleships costing $50,000,000
each, will be immediately undertaken while the government will continue with the construction of two new aircraft
carriers, one heavy cruiser, three light cruisers, twenty destroyers, four submarines, and two gunboats. The
government plans to spend around $1,000,000,000 on the army and navy in 1938.

President Roosevelt signs the amendment to the neutrality bill permitting the President to apply the arms embargo to
countries engaged in civil war.

Jan. 9 . — Acting Secretary of State Moore tells press: “I do not believe that a war involving the leading European
nations is about to occur. I decline to believe any such adventure in suicide is imminent”.

With over 95,000 men in the automobile industry in his state out on a strike, Frank Murphy of Michigan faces his
first serious problem as Governor of Michigan.

Jan. 11 . — President Roosevelt reports to Congress that the number of persons on the relief rolls totals 3,150,000,
lowest since November, 1935. Of the number, 2,284,000 are employed by the Works Progress Administration.

Jan. 12 . — Murphy calls out the National Guard at a number of places for strike duty following rioting in Flint.

Other Countries

Dec. 16 . — The In ter- American Peace Conference at Buenos Aires approves a resolution reaffirming the present
treaties between the American nations, providing for consultation in case of disputes threatening peace, for the
application of neutrality articles in case of war and the prohibition of arms exports, providing that the new
agreement shall not affect the rights and duties of American members of the League of Nations, and providing that
the agreement shall remain in force indefinitely.

Seventeen full divisions, totaling 150,000 troops, are being rushed to Shensi province together with air and artillery
units, to quell the revolt in Sianfu where Generalissimo Chiang Kai-shek, head of the Chinese government, is being
illegally detained by mutineers commanded by Marshal Chang Hsueh-liang. (Opinion in the Chinese press is
overwhelmingly against the mutineers.) The Tokyo Jiji Shimpostates editorially that Japan will support any Chinese
regime showing friendliness to Japan and antagonisms to communism. The United States is reported to view the
situation with concern.

British Foreign Secretary Anthony Eden tells the House of Commons that while the government will adhere strictly
to its decision not to grant de jure recognition of the Italian annexation of Abyssinia, it may accord de facto
recognition.

Havelock Ellis, famed English psychologist, states he would have preferred Edward remaining on the throne with
Mrs. Simpson as Queen. “It would have drawn the English-speaking people closer. ... I think the fact that she is
divorced would not have detracted in the slightest her qualifications as Edward’s wife and England’s Queen. We
badly need a reform in our divorce laws”.

Dec. 17 . — Government leaders at Nanking state it would be “beneath the dignity of the government to negotiate
with Chang Hsueh-liang, whom we consider a bandit. Nanking might be prepared to offer him assurances of his
personal safety, but never will any terms of a political nature be considered”. The Control Yuan, which has the sole

power of impeachment, unanimously demands that Chang be put to death, “otherwise, how can national discipline
be enforced? He has shaken the nation to its foundations. So enormous is his crime that it could not be expiated
should he die 10,000 deaths”.

Radio criticism of former King Edward and his personal friends by the Archbishop of Canterbury raises a storm of
protest in England, and the former King himself is reported angered at the criticism of his friends.

Dec. 18 . — Japanese marines are gradually withdrawing from Tsingtao which they occupied some weeks ago in
connection with the strikes in Japanese-owned textile mills.

Dec. 20 . — In a letter brought to Nanking by a freed hostage, Generalissimo Chiang states, “As far as I know, I shall
return to Nanking Saturday”, but earnest hopes throughout political circles in China that he would be freed are
disappointed when no further word is heard from him. Reports are rife in Japan and Germany that he has been
killed. The Soviet charge d’affaires calls at the Chinese Foreign Office and emphatically denies any Russian
complicity in the Shensi revolt and the seizing of Chiang, as has been charged in a section of the Japanese press.

Eden warns the German Ambassador that Britain is taking a grave view of Germany’s continued dispatch of
“volunteers” to Spain which are said to be regular army units. In the House of Commons he states: “It is the duty of
all nations to keep out of the Spanish quarrel and allow the Spanish people to settle their own sufficiently tragic
difficulties in their own way”. More than 80,000 foreigners are fighting in Spain according to an official French
estimate; on the side of the government — 12,000 French, 2,000 German anti-Nazis, 2,000 Belgians, 2,000 Poles, and
10,000 Russians; on the side of the rebels — 30,000 Germans, 24,000 Moors, 800 Irish, 500 French. Russian officials
charge the Spanish rebels with having fired on and burned the Russian ships, Komsomol, an "incredible, criminal
provocation and an outrageous piratical act”, and declare that Russian may propose listing Spanish rebel ships as
pirate craft under international marine regulations, to permit neutral vessels to fire on them whenever they are
encountered.

Dec. 21 . — The United States delegation to the Inter- American Peace Conference demonstrates a quiet opposition to
a plan to link the American peace machinery with the League of Nations by refusing to vote on a resolution urging
American non-members of the League to cooperate with Geneva in peace efforts through attempting to coordinate
inter-American treaties with the League Covenant. The American spokesman declares that the United States policy
has been to aid the promotion and preservation of peace through fullest international cooperation but has also been
one of “non-involvement and non-entanglement in political affairs abroad”.

Dec. 22 . — France informs Italy it is transforming the French legation at Addis Ababa into a consulate, and it is
stated in Rome that the Anglo-French de facto recognition of Ethiopia as a part of the Italian Empire paves the way
for negotiations toward peace in the Mediterranean.

Dec. 23 . — Secretary of State Cordell Hull, of the United States, speaking at the closing session of the Inter-
American Peace Conference, praises the conference as having produced among American republics “a common and
solidary attitude toward attack from abroad”, this being accepted among informed persons as the tacit establishment
of the Monroe Doctrine as a common policy of all American countries instead of, as hitherto, advanced and
supported by the United States. Under this interpretation, all the nations would share the responsibility for
preserving the American hemisphere against outside aggression.

Dec. 24 . — Reported at Paris that the German Ambassador to the Spanish fascists at Burgos has gone to Berlin to ask
for five divisions of 12,000 men each. General Francisco Franco, rebel leader, having said that he must have the
troops to win the war. France is reported to have warned Germany that it will be forced to aid Spain if Nazi troops
make a new mass “invasion” of Spain.

The finance committee of the French Chamber of Deputies unanimously approves a loan of 405,000,000 francs to
Poland and an additional amount of 945,000,000 francs for the Polish government railroads, a move considered of
great importance in consolidating the return of Poland to the French diplomatic circle.

The Cuban Senate convicts President Miguel Gomez of charges brought against him by the House of "interfering
with the free functioning of the legislative power”, thus removing him from the presidency. He resigned informally
before the Senate met. Vice-President Laredo Bru automatically succeeds him. Gomez vetoed a bill taxing sugar for
the support of schools militarized by the army on the grounds that it would “militarize childhood”. Colonel
Fulgencio Bautista, Chief of Staff, and real ruler of Cuba, supported the bill.

Pope Pius delivers a world-wide radiocast appealing for peace. He bitterly refers to “atheistic communism” in Spain
and pleads for vigilant action by a union of “all men of good will against the propaganda of the enemy”. He also
refers to those fighting communist “with false and fatal ideas”, believed to be aimed at the German church policy.

David Lloyd George radios a Christmas message to the Duke of Windsor in which he “deplores the shabby, stupid
treatment” accorded to the former King, and “regrets the loss sustained by the British Empire of a monarch who
sympathized with the lowliest of his subjects”.

Dec. 25 . — Generalissimo Chiang Kai-shek, released by Marshal Chang Hsueh-liang who seized him on December
12, arrives at Loyang by plane, accompanied by his wife, T. V. and W. H. Donald, and adviser, and escorted by four
military planes. The news is sent throughout China and is celebrated everywhere with impromptu parades and
fireworks.

The Spanish press angrily replies to the Pope’s address, one newspaper stating, “the Church has once again declared
attachment to the provokers of the civil war. He could have aided peace better by exhorting the rebels to halt
bloodshed instead of by attacking communism”. A Spanish gunboat seizes the German ship Palos in the Bay of
Biscay.

Dec. 26 . — The French Foreign Office outlines plans for returning German colonies held under League mandate by
France, if Chancellor Adolf Hitler will agree to a “full and lasting settlement” of European political and economic
problems, renouncing territorial claims in Europe, stop enlistment of German volunteers for service in Spain. It is
claimed that Britain would join France in furthering this program. The colonies chiefly concerned are Togoland and
the Camaroons in Africa with an area of 188,321 square miles.

Germany demand the release of the freighter Palos on pain of reprisal. In revenge for the fierce bombing of Madrid
on Christmas night, Asturian miners blow up a rebel troop train near Talavera de la Reina, killing hundreds of
soldiers.

The Japanese Diet is formally opened by Emperor Hirohito. The army and navy in a joint statement propose radical
reforms in the administration and parliament, and in the election laws.

Dec. 27 . — Generalissimo Chiang, who was officially welcomed, crowds vociferously demonstrating their joy at his
safe return, issues a formal statement blaming himself for being partly responsible for what happened as he as head
of the army evidently failed to maintain adequate discipline. Marshal Chang, who followed him to Nanking, issues a
statement declaring “I am naturally rustic, surly, and unpolished, and it is for this reason that I committed this
imprudent and criminal act. Now I have penitently followed you to Nanking in order to await punishment befitting
my crime. I will accept even death if such should be beneficial to the country. Do not let sentiment or friendship
deter you in dealing with me as 1 deserve”.

Dec. 28 . — Stated in authoritative circles that Britain will refuse to “whet the Nazi appetite through trading financial
assistance and territorial concessions for a German pledge to observe strict neutrality in the Spanish civil war.
Britain believes that the time has come to call a halt to Germany’s strategy at hurling “faits accompli” at the rest of
Europe and taking a “what are you going to do about it” attitude.

Stated in government circles in Berlin that the French and British notes regarding non-intervention were “delivered
to the wrong address” as Germany made the first proposals in this connection, but these efforts were sabotaged by
the attitude of Russia and France which caused such damage that it can scarcely be repaired by renewed diplomatic
activity. It is “authoritatively revealed” at Rome that the government has ordered the suspension of the transfer of

volunteer soldiers to Spain pending negotiations for an international agreement on the subject. It is also “reported
without confirmation" that Italian volunteers have been ordered removed from the Balearic Islands as a result of an
imminent Italo-British agreement for cooperation in the Mediterranean.

Dec. 29 . — Russia approves in principle the Franco-British proposals regarding the banning of foreign volunteers
from Spain. Government forces claim successes in the south of Spain in the Cordoba sector and also northeast of
Madrid where they obtained control of the Saragosa valley. Announced at Berlin that the freighter Palos has been
released. According to an Associated Press dispatch from Berlin, it is reported that Premier Benito Mussolini has
abandoned General Franco and has advised Hitler to do the same.

Dec. 30 . — Mussolini is reported to view the Soviet alliance with the Spanish leftist government as a problem as
embarrassing to England and France as to Italy and Germany, and as feeling “why should Italy and Germany alone
pull the chestnuts of other powers out of the Spanish fire?” Some German militarists who doubted Mussolini as a
reliable ally, are reported doubly doubtful now.

The British Admiralty announces two new 35,000-ton battleships will be laid down on lanuary 1 upon expiration of
the Washington and London naval treaties, “regardless of what other nations do”.

Generalissimo Chiang is reported to have tendered his resignation as Premier and to have requested punishment for
being ultimately responsible for the lack of discipline in the army that resulted in his detention and “nearly resulted
in the collapse of the foundations of the state”, but the Central Executive Committee issues a communique stating
that he will resume his duties as head of China’s political and military affairs.

Dec. 31 . — Marshal Chang Hsueh-liang is sentenced by a special tribunal to ten years imprisonment. He accepted
entire responsibility for the revolt and said it had been motivated by a desire to achieve freedom and equality for the
country.

Jan. 1 . — The Italian press ministry refuses either to confirm or deny apparently reliable reports that 3,500 fascist
volunteers left recently for Spain. Reported that Hitler is also rushing “volunteers” to Spain, taking advantage of the
delay in the negotiations of further non-intervention agreements.

Miguel de Unamuno, Spanish philosopher and liberal, dies at Salamanca, aged 72.

Jan 2 . — A German warship “provisionally” seizes a Spanish government ship, and another German war vessel
drives a Spanish ship ashore by gun-fire. The German Foreign Office announces that the “rough treatment” of
Spanish ships will be continued until all Nazi ships on the high seas are respected.

Jan. 3 . — The British Ambassador at Rome and Count Ciano, Italian Foreign Minister, signs an Anglo-Italian pact in
which the two governments “exchange reciprocal assurances regarding the Mediterranean”. It is believed to include
a provisions for the maintenance of the status quo and the freedom of transit and communications, and assurances
that the agreement is not directed against a third party. The value of the agreement is thought to be principally
psychological, representing a reapproachment after the Abyssinian war, although British recognition of Abyssinia as
part of the Italian Empire is said not to be mentioned in the agreement.

The Spanish government terms the German action against its ships as “an act of war” and a “flagrant act of
intervention".

Jan. 4 . — The rebels again rain bombs on Madrid and at least a hundred people are killed and several hundred
injured. A German warship captures another Spanish merchant ship and a Basque patrol ship captures a German
steamer. A German Foreign Office spokesman states that German warships will continue to seize Spanish socialist
ships to avenge the capture of the Palos and that there “must be more reprisals” unless the German demand that a
Spanish passenger on the Palos and a part of the cargo that was confiscated be released by the Spaniards. While it is
stated in London that the British had obtained an Italian guarantee of “hands off’ Spanish territory before signing

the Mediterranean status quo agreement with Italy, reports from Gibraltar state that about 6,000 Italians wearing
Italian uniforms disembarked at Cadiz and boarded trains to join the rebel troops the day before the signing of the
agreement.

The State Council grants an unrestricted pardon to Marshal Chang Hsueh-liang. He is expected to go into retirement.

Jan. 5 . — The commander of the German fleet in Spanish waters is announced at Berlin to have issued an ultimatum
demanding the release of the remainder of the Palos cargo and the one passenger by 8:00 a. m. Friday. The Basque
radio station at Bilbao announces that the Valencia government will not bow to the ultimatum and that the seizure of
the cargo of the Palos, allegedly contraband, is not comparable to the “illegal detention” of Spanish ships by
Germany. Eighteen rebel bombers, most of them German, attack Bilbao and three of them are brought down by the
loyalists. It is stated in Paris that 10,000 Italian “volunteers” have recently joined the Spanish fascists forces. Britain
mobilizes its battleships in Spanish waters to protect its merchantmen.

Jan. 6 . — Stated at Rome that Italy and Germany have decided to continue sending volunteers to the Spanish
“nationalist” side “until all direct and indirect intervention by other nations has ceased”. Britain has expressed a
“grave view” of the part foreign volunteers are taking and has urged Berlin and Rome to reply before the week-end
to the Anglo-French appeal that they halt the movement. It is reported from Paris that if the replies are not favorable,
a Franco-British naval blockade of Spain is likely.

Jan. 7. — More than 3,000 international volunteers reported to have entered Spain yesterday and the Spanish
government charges before the League of Nations that Germany is endangering the whole course of European peace
through repeated acts of intervention. A Basque loyalist radio announcement declares that armed Germans captured
with insurgent forces will be treated as common prisoners, subject to execution. Germany replies to Britain and
France it will accept the proposal to ban foreign volunteers from Spain provided other powers agree to do so and
effective supervision is undertaken. Italy also accepts “in principle” provided all direct and indirect aid be stopped.
The Italian budget closed with a deficit of 1,550,000,000 lire, not including any of the cost of the Abyssinian war
which was not budgeted for.

Princess Juliana of Holland, heir to the throne, and Prince Bernhard zu Lippe-Biesterfeld are married at The Hague.

Jan. 8 . — Reported from Paris that Germans are supervising the construction of fortifications and the installation of
German long-range guns in the Spanish Moroccan port, Ceuta, held by the rebels, opposite Gibraltar, and that more
than 3,000 German troops have arrived in Morocco. The French government protests to the Spanish rebel
government at Burgos, and a French official tells the press, “France finds it impossible to permit Germany to gain a
foothold” in Spanish Morocco. The British Cabinet holds an emergency session. The British Embassy in Madrid is
hit by four incendiary bombs dining a rebel raid and a military attache is wounded. Belgium gives Spain 40 hours to
deliver with military honors the body of Baron Borchgrave, Belgian Embassy Secretary, allegedly slain by
Spaniards, and also demands an indemnity of $35,000. Reported that 3,500 Italian troops have landed at Cadiz and
boarded a train for Seville to join the rebels, and it is reported from Rome that Mussolini will double Italian aid to
the Spanish fascists “if his proposal to prohibit all direct and indirect aid to the combattants is not accepted.”

Jan. 9 . — A French official in Paris states that France will go to any length, even war, to eject the Nazis from Spanish
Morocco. French forces at Fez in French Morocco are reported to be mobilizing. Thousands of German and Italian
troops are reported to be landing at Cadiz in flagless and nameless ships.

Leon Trotzky arrives at Tampico, Mexico, and pledges himself to “complete and absolute non-intervention in
Mexican politics”. He denounces the Moscow “frame-up” that involved the execution of some sixteen men,
including leading communist, some months ago.

Jan. 10 . — A Berlin spokesman denies all knowledge of Nazi troops landing in Morocco and constructing
fortifications and declares that France is resorting to “Jewish, Bolshevistik lies”. It is said in "informed circles” in
Berlin, according to a news dispatch, that Hitler has sent between 15,000 and 25,000 men to Spain and hopes to
secure mining concessions in Spain and possible colonial territory. Reported that the British Admiralty is drafting

plans to blockade the entire Spanish coast unless intervention is ended. The French Atlantic fleet moves into
Moroccan waters and 100,000 French colonial troops in French Morocco are said to be ready for any emergency.
The rebels are again at the gates of Madrid after a week of fighting.

Jan. 11 . — It is stated in London that Britain does not take too serious a view of the situation in Spanish Morocco,
reports of German activity there having been exaggerated. Reported, however, that there are ninety British warships
and 15,000 regular troops concentrated near Spain.

Reported that Hitler has told the French Ambassador that Germany has no intention of trying to seize territory of
Spain or a Spanish possession.

The former troops of Marshal Chang Hsueh-liang are said to be on the verge of mutiny under Yang Hu-shen who
has proclaimed himself dictator of Shensi province. The Chinese government at Nanking advises foreigners to
evacuate the province.

Jan. 12 . — The British Foreign Office states that reports that Britain is considering collaborating with France
regarding possible occupation of Spanish Morocco, are false.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1937). News Summary. Philippine Magazine, 34(2), 59-63, 100.

President’s Month in Review: March, 1937

News Summary, Philippine Magazine: February 16 - March 13, 1937

News Summary
The Philippines

Feb. 16 . — Secretary of Agriculture and Commerce Eulogio Rodriguez is reported to be seeking authority to organize
a coconut products board authorized by an old and apparent forgotten act of the Philippine Legislature.

Police are rushed to the Sabani Estate, owned by the National Development Company, where trouble has arisen over
the division of the harvest with the tenants.

Feb. 17 . — News of the appointment by President Roosevelt of Governor Paul V. McNutt as U.S. High
Commissioner in the Philippines is generally well taken in Manila although regret is expressed that the appointment
did not go to Acting U.S. High Commissioner J. Weldon Jones. Mr. Jones himself expresses his satisfaction and
telegraphs his congratulations.

The Philippine Coconut Planters Association after a meeting at the Manila Hotel sends a telegram to President
Quezon asking him to make representations on behalf of the industry in Washington, declaring that the revenue tax
on Philippine coconut oil is a “tax on poverty and an unfair burden on 4,000,000 Filipinos who are dependent upon
the industry for a bill which would abolish the tax.

Secretary Jorge B. Vargas announces that the ten sugar centrals fined nearly P500.000 for producing sugar in excess
of their quotas have offered satisfactory explanations and have been exonerated, and the fines cancelled. The surplus
sugar will be turned over to charitable institutions.

Feb. 18 . — General Emilio Aguinaldo states he may go to the United States to confer with leaders of the Washington
administration regarding the need of granting the Philippines early independence. Friends of Judge Juan Sumulong
state he may accompany the General to personally present the resolutions recently adopted by the “National
Socialist Party”.

James H. Keefe, Assistant Chief of the Customs Secret Service, is reported to have been sent to northern Luzon to
check up on reports of rampant smuggling of foreign merchandise through closed ports.

Officials find that the old coconut board law went into the discard as unconstitutional after the Board of Control was
declared unconstitutional by the Philippines and the United States Supreme Courts. The creation of an advisory
board by executive order is now being studied.

Feb. 19 . — Judge Quirico Aberto, former Secretary of Justice and an opposition leader, declares he does not favor the
plan of General Aguinaldo and Judge Sumulong going to the United States at this time and that he will do his best to
dissuade them.

Announced at Malacanang that President Manuel L. Quezon had pardoned twenty more prisoners, most of them
convicted of sedition during the Minerva Tobacco Factory riots and in various uprisings.

U.S. High Commissioner Jones transmits to Malacanang dispatches received from the State Department suggesting
that the Philippines send delegates to the International Sugar Conference to be held in London shortly.

Feb. 21 . — Tenants of the Sabani Estate reject the offer of the Company to reduce the land rent from 35 to 25 per cent
of the annual harvest, asking that it be reduced to 20 per cent. They also demand the dismissal of Guillermo
Francisco, estate administrator, and of two foremen, claiming that these men are working to prevent the planned
subdivision of the estate for sale to the tenants. Local authorities claim that the tenants are well treated and that
tenant leaders are stirring up trouble to gain prestige for the coming election. Soldiers armed with riot guns and tear
gas bombs are supervising the present threatening.

Feb. 22 . — Malacanang announces, following a radio -telephone conversation between President Quezon and
Secretary Vargas that Joaquin M. Elizalde (“Mike”) has been selected to head the delegation to the London
international sugar limitation conference opening on April 5.

The Rev. J.F. Hurley, new Superior of the Jesuit Order in the Philippines, announces that the longstanding
controversy with the tenants of the Lian Estate, property of the Colegio de San Jose, Inc., has been settled, the Order
having granted all tenant requests, condoned all delinquencies in the payment of installment fees, and reduced the
price per hectare at which the land is being offered to the tenants from P250.00 to P200.00, payable in ten years,
30% off for cash. Since the signing of this new contract, he states, 60 per cent of the hacienda has already been sold.
Tenants who do not wish to purchase the land will be permitted to continue to rent their respective lots. Father
Hurley states: “The low price is an attempt to put into execution the principles of social justice of Pope Pius”.

The old red and gold flag of the Spanish monarchy is hoisted at the Casa de Espana in Manila in connection with the
induction of the new directors and it is declared that the flag will hereafter be the official flag of the Club. The
Spanish Consul-General who formerly had his offices in the building, has moved out.

The corner stone is laid at Kawit, Cavite, of a monument in commemoration of the foundation of the first Masonic
Lodge in the Philippines in 1856.

The Philippine Industrial Fair and Exposition closes.

Erlanger & Galinger, Inc. announces the early establishment of a powerful short-wave radio station to be ready for
operation about June 30. The installation will enable the station to cover adequately the entire Far East and, under
favorable, conditions, Europe and America also.

A new Sikorski S. 43, sixteen passenger amphibian plane recently acquired by the Iloilo-Negros Air Express
Company, inaugurates its service between Manila and the Visayas after a number of preliminary flights.

Feb. 23 . — Bureau of Customs figured released show that Philippine exports for 1936 amounted to P272,896,106 and
imports to P202,252,349, a gain of P84, 404,746 and of P70, 643,757, respectively over 1935.

The Fourth Annual Convention of the Philippine Scientific Society opens under the auspices of the National
Research Council, Vice-President Sergio Osmena delivering the opening address. Other speakers during the day
warn against the effects of the exodus of scientific workers from the government service, induced by offers of
greater remuneration from private enterprises.

The Manila Harbor Board rejects all bids submitted for the operation of pier haulage in Manila. The firms were the
Manila Terminal Company (present operators), the Philippine Terminal Company, the Insular Arrastre Service, and
Santos & Co.

Assemblyman Manuel Roxas, a major in the Philippine Army reserve, is called to active duty, he and a number of
other assemblyman reserve officers to conduct a campaign of public information on the defense program.

Feb. 24 . — The annual report of American Trade Commissioner J. Bartlett Richards in Manila shows that the
inclusion of gold exports amounting to some P42,000,000 and approximately P6,000,000 in sugar benefit payments,
which may be considered as equivalent to exports of sugar, gives the Philippines a favorable 1936 trade balance of
PI 18, 000,000 — a record figure. This augments the official Customs figure. This augments the official Customs
figure of P70,643,757, the visible balance of merchandise.

The new city government of Cebu is inaugurated with Secretary of the Interior Elpidio Quirino representing
President Quezon. Similar ceremonies will be held at Zamboanga on February 26 and Davao on March 1 .

Malacanang announces that President Quezon approved last Saturday the designation of Gregorio Anonas, Manager
of the Metropolitan Water District, as acting Manager of the National Power Company.

Secretary of Finance Antonio de las Alas announces that the arrastre service will be transferred from the Manila
Terminal Company to the Manila Railroad Company, a government corporation, as after the Manila Harbor Board
has rejected all bids and the terms offered have been made public, it is inadvisable to call for new bids. No time has
been set for the transfer.

Judge J.W. Haussermann, after peaking before the science congress in Manila and advocating a steady raising of the
Philippine standard of living, is reported to have donated PIO.OOO through the National Research Council and the
Philippine Scientific Society for the furtherance of research.

Seven British destroyers from Hongkong arrive in Manila for a visit.

Feb. 25 . — Reported that the government-owned companies did better in 1936 than in 1935, the Cebu Portland
Cement Company making a profit of nearly half a million pesos and the Manila Hotel a profit of P200.000. The
National Rice and Corn Corporation made a profit of over 100 per cent from its sales of imported rice, but the gains
will be added to the organization’s capital. The Manila Railroad Company showed a loss of about PI, 500, 000 as
against PI, 840,000 in 1935, largely due to burdensome conditions in connection with the payment of interest on
loans.

A group of anti-administration leaders, meeting in the house of Gen. Jose Alejandrino, send a telegram to President
Roosevelt asking him to veto Act 2336 because it seeks to grant “excessive delegation of power to the President of
the Commonwealth”. The Act which would empower the President to raise tariff schedules by not more than 400 per
cent and lower them not more than 75 per cent and also appropriates P50.000 for these establishment of an advisory
tariff commission, was signed by President Quezon in December and is now before President Roosevelt for his
approval. Those signing the telegram are General Aguinaldo, Bishop Gregorio Aglipay, Celerino Tiongco, Sakdal
head. Judge Sumulong, Judge Aberto, General Alejandrino, and former Senator Emiliano Tirana, executive
secretary of the so-called “Popular Alliance.”

Tenants of the Lian Estate institute an action in the Court of Industrial Relations, it being started that proprietors in
the region are taking advantage of the sales terms offered by the Jesuit Order and buying up the land for themselves.

U.S. High Commissioner Jones, speaking before the Manila scientific congress, warns against an undue fear of
“duplication” in scientific work, against excessive government regimentation, and against a spirit of nationalism in
scientific work.

Feb. 26. — Rev. Hurley states that the trouble brought before the Court of Industrial Relations by the tenants of the
Lian Estate was brought about by a decision of the Jesuit Order to sell the land to others after the tenants had failed
to take advantage of the terms of sale offered in 1931. “We gave them until January 15 of this year”, he declares.
“That the prices asked are reasonable (P300 for first-class sugar land, P250 for second-class, and P200 for third
class, with 25% off for cash) is shown by the fact that we sold about a quarter of a million pesos worth of land to
farmers from Balayan and neighboring towns”. Father Hurley claims, however, that the annual rents collected have
not been enough pay even half of the taxes paid the government.

Reported that the intention of the British Imperial Airways to seek permission to extend its lines to the Philippines
and that a Japanese company is planning to ask for a similar permit.

Maj.-Gen. Paulino Santos urges the construction or roads leading from the provincial highways to the various
military training camps throughout the country, the cost being estimated at P230.000.

Assemblymen criticize the opposition of General Aguinaldo, Judge Sumulong and others to the act now before the
President of the United States for approval which would give the President of the Commonwealth power to alter

Philippine tariffs within certain limits. Assemblymen Maximo Kalaw states the act would give the Philippines
virtual tariff autonomy and that the projected visit to Washington of some members of the opposition would be “ill-
advised, illogical, unreasonable, and destructive of democratic principles”.

Feb. 27 . — Reported at Malacanang that President Quezon in a radio-telephone conversation with secretary Vargas
informed him that the London sugar conference is to be attended only by government officials, a member of the
Cabinet to represent the United States, and that he may therefore appoint Secretary of Justice Jose Yulo to represent
the Philippines, J.M. Elizalde, now on the way to Washington on the Philippine Clipper to go as adviser. President
Quezon is also reported to have asked for an explanation of the rejection of all bids in the arrastre matter, having
stated that only very strong reasons would justify such action.

The Fourth Philippine Science Convention closes after adopting a number of resolutions urging the sending of more
government pensionados abroad, more adequate funds for Philippine representation at international scientific
conferences, stronger support of the government’s industrialization projects, an appropriation of P30.000 by the
Manila city government for the study of the algae nuisance, funds for water power studies, more adequate funds for
maintenance of the scientific library, etc. The conference opposed merging the science library with the National
Library. Dr. Arturo Garcia is elected president of the Philippine Scientific Society, succeeding Dr. Eduardo
Quisumbing.

Director of Science Angel S. Arguelles is elected Chairman of the National Research Council, succeeding Dr.
Manuel L. Roxas.

Five foreign steamers with heavy cargoes being due, and a dispute having arisen relative to the turning over of the
arrastre service from the Manila Terminal Company to the Manila Railroad Company, Secretary de las Alas is
reported to have threatened the use of the Philippine Army to operate the pier haulage. It is finally agreed that the
Terminal Company will continue the service until the Railroad Company can take over, the latter having declined to
take over immediately.

The Supreme Court rules that provincial sheriffs are not empowered to destroy tenants’ homes when tenants are
delinquent in rental payments and issues a permanent writ of preliminary injunction in such cases. The matter was
carried to the Court by the lawyer of the owners of some 450 tenants whose houses were demolished on the Tunasan
Estate a year or two ago.

Feb. 28 . — Budget Commissioner Serafin Marabut points out that the proposed creation of a coconut board would
violate the Congressional excise tax law which prohibits any subsidy to be paid to copra producers.

In a scuffle over a loaded revolver during an indoor baseball game at Paranaque, Corporal Alejandro Flores of Camp
Murphy accidentally shoots and kills Feliciano Caguion, another soldier.

March 1 . — Lian Estate officials agree before Judge Francisco Zulueta of the Court of Industrial Relations to mill the
sugar cane of the tenants at P4.50 a ton, the tenants having for some time refused to mill their cane in order to force
the owners to desist from selling the land to outsiders. Judge Zulueta informed the tenants he could not cancel the
sales of land already made, as they requested, but promised to use his influence to have the owners sell the land
only.

Corporal Flores and a number of other soldiers are reported to have assaulted a reporter of the Philippines Herald
when he questioned them for his paper at the Philippine General Hospital, allegedly in the presence of some officers
who failed to interfere.

March 2 . — President Vicente Carmona of the Philippine National Bank reports at the annual meeting of the Bank’s
stockholders that the institution made a net profit of P9,582,5 19.75 in 1936, as compared with P3, 719,996. 87 in
1935, due largely to recoveries from previously charged-off assets, balances of loans to various sugar centrals
written off some years ago which were later reinstated at full face-value. The entire Board of directors is reelected
and the executive officers also remain the same.

Corporal Flores having reportedly resisted arrest by Paranaque policemen and to have surrendered to his officers
instead, the question is taken up by the Cabinet which rules that the civil authority is supreme over the army. A
complaint for homicide is filled against Flores in the justice of the peace court of Paranaque.

March 3 . — An investigation is begun of the Insular Psychopathic Hospital as a result of the recent deaths of two
inmates who are alleged to have been mistreated by the Hospital attendants.

March 4 . — Due to dispute over the election of officers of the Philippine National Federation of Labor, the
Confederacion Nacional Obrera de Filipinas is organized and it is reported that some forty labor organizations have
already agreed to join the new body.

March 5 . — Local sugar men are reported to feel that the loss of some 70,000 short tons from the present quota, as
specified in the new sugar quota and tax plan now being considered at Washington, would not seriously affect the
Philippine industry because most of this represents the dutiable portion of the quota which it is not contemplated to
fill anyway.

March 8 . — The Board of Directors of the National Power Corporation authorizes the drafting of plans for an
auxiliary Diesel power plant in the Port Area, supplementary to the so-called Angat project, which would supply
light and power to the piers. Engineer Island, the Manila Hotel and other government institutions. Gregorio Anonas
of the National Development Company states that the Company contemplate establishing cotton yarn, spinning, and
food factories and that it must have cheap power to push these projects through.

Judge Ricardo Nepomuceno, Exchange and Securities Commissioner, promulgates a set of new rules supplementary
to and modifying those issued by the Bureau of Commerce, in accordance with the new Securities Act. Short selling
and trading on margin is prohibited, except under certain conditions.

Secretary Vargas states, in reply to criticism of the government for putting a stop to the privilege granted some
government employees to teach in private schools, which policy is being blamed for certain resignations from the
government service, that the action is the outcome of studies of an economy and efficiency committee and that the
privilege outside teaching has seriously interfered with the government plan of frequent provincial assignments, etc.

March 9 . — Secretary Vargas announces the opening of a nation-wide contest for the best book-length biography of
Jose Rizal. The contest is open to every Filipino citizen and substantial monetary prize awaits the winner. The
bringing to light of obscure or hidden facts in the life of the hero is principally encouraged.

March 11 . — Secretary Rodriguez and a party representing four different departments visit various places in Nueva
Ecija to investigate the growing unrest among the tenants. It is stated that provincial and municipal officials are
showing partiality with the land-owners against the tenants.

March 12. — Angry farm tenants resort to incendiarism and looking in several places in Nueva Ecija and jails in
Cabiao and San Antonio are overcrowded. Tenants say justice of the peace do not investigate persons brought to
them by landlords before throwing them into jail. Faustino Aguilar, Under-Secretary of Labor, states he will bring
charges against landlords who are defying the new tenancy law.

At a meeting of government and aviation company officials at Malacanang a committee is formed to study the
airport question headed by Captain Harvey W. Prosser, Chief of the Division of Aeronautics of the Department of
Public Works and Communications.

March 13 . — Reported that twenty-two farm tenants have been arrested in Pampanga and charged with “robbery in
band’’, their bail being set at P6,000 each, which they can’t pay, because they were caught harvesting rice planted by
them but upon land from which they had been evicted.

Manila authorities announce they will investigate the charges brought by the Chinese Consul-General that certain
police officers are blackmailing Chinese residents by framing case against them and planting false evidence, and that
upon payment of certain amount of cash an enemy may be falsely arrested.

Judge Sumulong announces he will reenter politics. “I thought, but recent events force me to take active part once
more in the discussion of questions vitally affecting our country.”

Earlier in the day he was quoted as warning against mixing political with economic questions in Washington, stating
these should be taken up separately. While he would favor the shortening of the transition period, he states he does
not believe an early grant of independence would solve Philippine economic problems. He asserts that President
Quezon has now so modified his commitments in Manila that it is difficult to ascertain just where he stands.

General Aguinaldo states he is delighted with the present trend toward earlier independence and that in view of this
he is giving up for the time bang the idea of going to Washington. Various assemblymen are quoted commenting
favorably on the new developments in Washington and others declare the people should have confidence in
President

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1937). History from day to day : The Philippines. Philippine Magazine, 34(4), 155-157.
Retrieved fro m https://arc hive.org/stream/acd5869. 0038. 001. umich.edu#page/n5/mode/2up.

News Summary, Philippine Magazine: March 15 - April 9, 1937

News Summary
The Philippines

March 15 . — Nineteen girl workers are burned to death and others are injured in an explosion and fire in the Manila
Hitt Flashcrackas Company at Pasay. Some sixty-two girls were employed in the place, owned by Chinese, who
were paid about P2.50 a week. Various government agencies start investigations.

Juan Sumulong declares that a consolidated minorities party will be formed which will devote itself to helping in the
establishment of an effective democracy under the Tydings-McDuffie Act and the Constitution, discouraging
subversive activities of radical elements.

Coronation ceremonies are held at Jolo for Sultan Mohammad Amirul Umbra Amilbangsa.

Rafael Alunan, President of the Philippine Sugar Association, sails for the United States.

March 16 . — Elisio Quirino, manager of the National Economic Protection Association, states that “Cebu, Davao,
Zamboanga, and other regions”, visited by him as a member of the party of Secretary of the Interior Elpidio Quirino,
who officiated at the inaugurations of the three newly chartered cities, “are prosperous, but it is lamentable that the
trade in these flourishing communities is not in the hands of the Filipinos. This situation calls for an intensive and
aggressive economic protectionism campaign. The future of there rich regions depends largely on the contribution of
our nationals toward their further development”.

March 17 . — According to the annual report of Secretary of Finance Antonio de las Alas as President of the National
Development Company, the Company has asked the government to close all iron and asbestos deposits to private
exploitation and development on the expectation that the Company will shortly begin large scale development. It is
also disclosed that the creation of a National Food Product Corporation has been approved. The Development
Company is reported to have made a total profit of Pl,075,174.08.

In response to statements in Washington that the Philippines would have to liquidate all its financial obligations if
independence were to be granted before 1946, Secretary de las Alas state that the country is in a position to pay the
American bondholders at any time although he sees no reason why this should be done as an amortization fund
exists and the bonds are further guaranteed “with our property”. He expresses the view that the talk of shortening the
transition period is idle as he does not believe either President Roosevelt or President Quezon will permit themselves
to be guided by radical sentiment on either side of the ocean.

March 18 . — Lanao Moros are reported to be taking to the hills and building cotas in defiance of the government at
Binidayan, Bacolod, Onayan, Taraka, and Macin.

March 19 . — Judge Sumulong states at a meeting of the Popular Alliance leaders that “to be or not to be a
protectorate of the United States is the paramount issue in Philippine -American relations and trade and defense
questions are secondary to this. This fundamental issue can not be settled by the coming trade conference.” He
repeats his opposition to the Assembly’s tariff bill now before President Roosevelt, stating it is contrary to the
Tydings -McDuffie Act and likely to lead “to a perpetuation of the present monopoly of the market by American
products, thus curtailing Philippine economic freedom, extinguishing trade with other countries, and insuring the
“total absorption not only of our economic but also our political life by that of the United States.”

The immediate effect in Manila of the afternoon news dispatches to the effect that independence might be granted in
1938 or 1939 is a near panic in the stock market and there is some agitation to close the Exchange. Averages drop
12.47 points. Vice-President Sergio Osmena declines to comment “until he has received official advices from
President Quezon.” Secretary Jorge Vargas states “There is no cause for alarm. We have confidence in the ability
and patriotism of President Quezon.” Secretary de las Alas state, “If independence is to come in two years there

would be need for immediate readjustment of the national economy, but after the first pains of separation, the
country would pick up and rapidly regain normal. With the exception of the sugar industry, Philippine industry
would be able to survive the shock, and even sugar eventually would be able to get on its feet again if producers
would give up their present luxury. I believe there is no essential conflict in economic interests between the United
States and the Philippines and whatever conclusion may finally be arrived at in Washington, I am of the opinion that
Philippine- American trade relations will continue with or without independence.” Secretary Eulogio Rodriquez
states, “I am sure that if President Quezon has asked for independence earlier than after ten years he has good reason
to do so.” Assemblyman Tomas Oppus states he is a lover of independence, but that he believes the Filipino people
should not be rash in their reaction toward the idea of shortening the transition period as “abrupt means of doing
things usually result in loss of confidence”. In general, opinion in government and political circles is cautiously
expressed, but the indication is that while the plan is considered radical it would be acceptable if the existing
economic relations with the United States can not be improved by amending the Tydings -McDuffie Act. Minority
circles are quick to endorse the move and Vicente Sotto telegraphs President Quezon: “If the latest news that you are
demanding independence in 1938 or 39 is true, the Philippine Civic Union resolutely supports your patriotic attitude
which is in perfect accord with the invariable aspirations of our people”. Judge John W. Haussermann issues a
statement counseling against panic and declaring that Benguet and its affiliated companies are proceeding “along all
lines as if nothing had happened.” He reveals that he has recently cabled orders to the United States for equipment
and supplies totaling more than PI, 000,000 and that these orders had not been cancelled. “There was some agitation
to close the stock exchange. I strongly opposed this and am very glad to know that it did not close. It is true that
there was what may be called a selling wave of very short duration, but I am pleased that the public in general
responded and supported the market so that the net results were that the Islands have taken the news in good grace
and a willingness is shown to support the market in so far as mining shares are concerned, i have no hesitation in
saying that it is the duty of all of us to keep our feet on the ground and rally around the wishes of the administration
here and in Washington and do everything within our power to encourage the people to hold fast to their faith in the
general welfare of the economic situation in the Islands. The economic situation is sound and unless the people
disturb it by becoming panicky, all will come out well”. Mrs. Asuncion Perez of the Associated Charities states, “I
leave it to the politicians”. Dr. Ines Villa says, “ This is so sudden.”

March 20 . — Philippine financiers minimize the stock market slump of yesterday as most of the securities dealt in are
gold shares and gold has its intrinsic value and will always sell despite disrupted trade relations with the United
States. During the day, after some hesitation, prices tended upward.

Judge Sumulong states that the Washington dispatches are “nothing to get excited about. At this stage there is
nothing definite. The announcement that independence would come by 1938 was mere misinformation, it should be
known that Congress must pass any measure affecting Philippine independence”. Attorney C. A. DeWitt states that
the Quezon-Sayre statement is ambiguous and vague and “will engender uncertainty and anxiety and nothing else.
Both Filipinos and Americans are entitled to a more definite statement of what is being planned and done in matters

so profoundly affecting their future How will this committee of ‘experts’ be made up? Will it be political in

complexion or will Filipinos and Americans who have personal knowledge of the problems involved and who are
directly interested in the manner of their solution be included in such a committee? There has been a proneness on
both sides of the Pacific to exclude those vitally interested in such problems from participation in their consideration
and to assume that the study and disposition of such problems is exclusively for the government and its officials at
the moment in office.” A meeting in Plaza Moriones organized by Assemblyman Gregorio Perfecto adopts a
resolution urging independence in 1938 or 1939. The Philippine Coconut Association telegraphs President Quezon:
“While we believe the country in anxious for early political separation, the Philippine Coconut Association desires
to know the preferential principal involved as touching the coconut industry”.

Moros intrenched in the three Binidayan cotas open force on a Constabulary patrol reconnoitering the region, and,
encouraged by their superiority in numbers, also fire on the S.S. Governor Blanco on Lake Lanao. There are said to
be some hundred persons in the cotas, including women and children. They have been ordered to surrender and an
attack in force is planned for tomorrow if they do not.

March 22 . — The stock market, after slight recoveries on Saturday, takes a drop down to the lowest levels for the
year, with the market closing “very weak and no buying support in sight”.

Stated at Malacanang that a radiogram to Vice-President Osmena from President Quezon confirms the press reports
of his meeting with Assistant Secretary of State Francis Sayre and that he had with him at the meeting Speaker Gil
Montilla, Benito Razon, Secretary of Justice Jose Yulo, Commissioner Quintin Paredes, Assemblyman Felipe
Buencamino, and Joaquin M. Elizalde, and that it was agreed that a joint preparatory committee of American and
Filipino experts would be appointed immediately to study the trade relations between the United States and the
Philippines and to make recommendations thereto. “In view of the fact that 1 have recommended that the period of
granting complete independence be shortened to 1938 or 1939, it was also agreed that this joint committee of experts
will be expected in making their recommendations to consider the bearing which this advancement of the date of
independence would have on facilitating or retarding the execution of a program of economic adjustment in the
Philippines. It was further agreed that preferential trade relations between the United States and the Philippines are
to be terminated at the earliest practicable date consistent with affording the Philippines a reasonable opportunity to
adjust their national economy. Thereafter it is contemplated that tread relations between the two countries will be
regulated in accordance with a reciprocal agreement on a non preferential basis. The holding of the conference
provided for in the Tydings-McDuffie Act will be postponed until the joint preparatory committee shall have
presented its report.”

Under-Secretary of Justice Jose P. Melencio proposes that loans by landowners to tenants be suppressed and that the
National Rice and Corn Corporation be required to make crop loans to tenant farmers.

The Philippine Aerial Taxi Company is granted a permit to extend its line from Paracale to Naga and Legaspi.

March 23 . — Following a radio -telephone conversation between President Quezon and Vice-President Osmena,
Secretary Vargas tells the press that Mr. Osmena is optimistic as to the outcome of the forthcoming conference
which he believes will produce results that will assure Philippine economic stability. Mr. Vargas states that
President Quezon will probably utilize the services of Conrado Benitez, who is on his way to the United States, and
also of Arthur Fischer, scheduled to leave for the United States shortly, although he has not yet chosen the members
of the Philippine group in the committee.

Prof. Abdon Llorente declares that it would rash on the part of the Filipinos to endorse early independence even if
no improvement can be obtained at present in the terms of the Tydings-McDuffie Act, for the almost unanimous
conclusion of economic experts on both sides of the ocean is that even ten years is too short. “It is, of course, very
important that we seek changes in the independence law to remove inequalities, but failing in this effort does not
remove inequalities, but failing in this effort does not justify our asking for a worse bargain. If we fail in our present
efforts we should proceed with the year program and in the meantime make every effort to reach a better
understanding”. Other economists, including Prof. Jose L. Celeste and Dr. Andres Castillo, hold that the effect of
immediate independence would not be worse than the effect of the economic restrictions in the Tydings-McDuffie
Act as an independent Philippines would be free from the baneful effects of the export taxes and limitations and
would have full tariff and currency powers. The transitional period would be best if we are given the means to make
adjustment possible, such as tariff and currency autonomy, but if no changes are obtainable in the present law,
immediate independence is preferable.

March 24 . — “High government officials” are quoted as saying that President Quezon is in dead earnest in his
immediate independence proposal and that he discussed the plan with various persons before going to the United
States as the only alternative to amending the economic provisions of the Tydings-McDuffie Law.

Placido L. Mapa, of the Financing Corporation of the Philippines and executive of three Occidental Negros sugar
centrals, in a commencement address at the Jose Rizal College states that the “question of the hour is not to seek a
shortening of the transition period, but whether in the face of present world conditions, the ten years provided, two
years of which have already expired, is sufficient.... If at the economic conference no satisfactory trade
arrangements between America and the Philippines is agreed upon to take effect after independence, I venture the
opinion that in that case the only course open to the Philippines for the attainment of independence under condition
which will make reasonably certain the maintenance and perpetuation of that independence is to prolong the
transition period. . .”

The Chinese-owned China Press of Shanghai, warns that the Philippines must not lose sight of events which have
transpired in certain parts of China under “alien inspiration,” which is also possible in the Philippines when
American protection is withdrawn.

Secretary of Finance de las Alas announces the establishment, sponsored and financed by the National Development
Company, of the National Food Products Company with an initial capital of P500.000, to engage in fish canning and
the manufacture of dairy products. Dr. Manuel Roxas will be the technical manager. Dr. Santiago Rotea, of the
animal products division of the Bureau of Animal Husbandary, will be in charge of the dairy products
manufacturing, and D. Florencio Talavera of the Fish and Game Administration, will be in charge of the Fish
canning plant. The Development Company is also reported to be making a study of the advisability of starting a
factory for the manufacture of cement and asbestos tiles and roofing shingles. Dr. Foster Bain, technical adviser, has
been asked to make a study of the feasibility of smelting iron ore in the Philippines.

Reported from Sibul, Bulacan, and Pontevedra, Capiz, that several score of Philippine Army trainees have staged a
walk-out to sped Holy Week in their homes.

The Department of Labot announces the terms of a contract it has drawn up for landlords and tenants to serve as a
model and in an effort to put an end to the present misunderstanding of the new Tenancy Law.

Complaints for multiple homicide through reckless imprudence are filed against three Chinese officials of the
Manila Hit Firecrackas Company of Pasay where an explosion and fire recently led to the deaths of twenty women
and girl workers.

According to official sources, some 9,300 students will graduate from the public high schools this month and some
6,000 private secondary schools.

March 25 . — “Some officials” are reported to have stated that Mapa’s address shows the “manifest opposition of the
sugar industry to independence”; others “in government and legislative quarters” voice objections to President
Quezon’s “radical and illogical position”. Oppus praises Mapa’s speech and states: “We need more men like him.
The country would profit by a frank and outspoken discussion o important public questions.”

Professor Llorente calls on Secretary Vargas to explain his statements quoted in the press in opposition to President
Quezon’s policy, this having been called into question as he is connected with a government advisory board and
should not have publicly opposed an adopted policy. Secretary Vargas is said to have asked him to make his
explanation in writing.

Dr. Santiago Barcelona, noted figure during the Philippine-American fighting and personal physician to General
Emilio Aguinaldo, dies at San Juan, Rizal, aged 74.

March 27 . — General Aguinaldo states he has abandoned his plans to go to Washington as President Quezon is now
working “for just what the Veteran’s Association has proposed”.

Assistant Solicitor-General Potenciano Pecson is reported to have filed charges against two justices of peace in
Nueve Ecija for having shown partiality in cases between landlords and tenants. He ascribes trouble in the province
not only to disputes about the division of the crop between landlords and their tenants, but to questions involving
ownership of lands.

March 29 . — The stock market move irregularly lower when trading is resumed after the holidays, with trading light.

Maj.-Gen. Paulino Santos states that the absence without leave of of several hundred trainees in Laguna, Capiz,
Albay and Batangas camps, during Holy Week, was due to strong religious sentiment and the irresponsibility of
youth. Some have returned voluntarily, others were brought back by their parents, and still others had to be sent

after. He states the men were trainees and not soldiers, which would have been more serious. Corrective measures
will be taken, he declares.

Four British flying boats arrive in Manila from Hongkong on a good will flight. They left Hongkong at 7:00 a.m.
and reached Manila at 2:00 p.m. They will proceed from here to British North Borneo, Sarawak, and back to
Singapore, their base.

Arsenio N. Luz, Director-General of the Philippines Exposition, Inc., in his report to the Board of Directors states
that though the Exposition was a success and 495,598 persons paid admission as against 433,579 last year, there was
a net loss of P2 1,609. 87 in operations, which he ascribes to substantial decreases in the receipts from auditorium
balls, auditorium seats, stockholders’ privileges, season’s tickets, etc. The total receipts were P226,875.96. He again
urges the acquisition of a permanent site and a clearer understanding as to government support.

Dr. Frank B. Morrison, noted Cornell agricultural economist, leaves for the United States after a six week survey of
the country as special adviser on animal husbandry to the Commonwealth, and tells the press: “1 have seen the
condition of your workers in the rice fields of Nueva Ecija and the cane fields of Negros, and I do not blame them
for feeling discontented. It seems that the hacenderos are more concerned about their carabaos than their workers....
I read in a Manila magazine while I was in Cebu that the income of your farmers average only P60.00 a year. That is
too meager. Over the problems of the Philippines, if it is to survive, is the promotion of the well being of the masses.
They must be helped to earn more and their standard of living must be raised considerably... Equally serious is the
keeping of conservative, level-headed men in control of the government. If you allow disgruntled and self-seeking
radicals to run your affairs, you had better look out... While the Islands can support a much larger population, there
are already heavily overpopulated sections, and the population should be checked to some extent by means of birth-
control.”

March 30. — Stock prices continue to move lower, the average closing figure on the Manila Stock Exchange being
162.23.

C.J. Chancellor, manager for the Far East of the Reuter news service, arriving in Manila, states that the reaction to
President Quezon’s proposal of early independence is one of general bewilderment. The belief is that President
Quezon “suddenly changed his mind”.

Stated by Sakdal leaders in Manila that Benigno Ramos, Sakdal leader in lapan, has telegraphed President Quezon
endorsing his early independence plan.

Professor Llorente is reported to have asked for six-months leave of absence from the Philippine National Bank
where he is employed as a special research worker, and from the advisory committee of which he is executive -
secretary, as he wishes to study conditions in Germany, Italy and Russia.

lose Paez, President and General-Manager of the Manila Railroad Company, in his annual report to the Board of
Directors states that the Company suffered a net loss in 1936 of P704.876.18 as compared to PI, 838,285. 88 in 1935.
The loss, however, is not a cash loss as it includes depreciation and retirement charges and as the net profits of the
Manila Hotel, owned by the Railroad Company, of P190.330.82, were not considered in computing the loss. He
points out, too, that the accumulated profits since 1917, when the government purchased the Company, totals over
PI 9,000,000. He states that the direct railway connection with Legaspi, Albay, will go into operation about the
beginning of next year, and recommends the construction of a combined highway and railroad bridge over the Pasig
connecting the San Nicolas District and the Port Area.

March 31. — Brig. -Gen. Vicente Lim leaves for Mindanao to make a study of special defense plan for Mindanao,
including the establishment of a system of army and roads focused on the southern coast.

A commercial house in New York is reported to have telegraphed its Manila office: “Philippines statesmen causing
little comment here. Considered preliminary fencing for trade agreement negotiations”.

A reply is received from President Quezon to the telegram of the Philippine Coconut Association stating: “We are
bearing in mind every interest of the Philippines”.

The Supreme Court upholds the right of the Manila Railroad Company to establish motor vehicle lines, as it is
authorized to do in its charter, and rules that the Public Service Commission exercises no supervision over the
Company except in regard to rates.

Delfin Jaranilla in a brief filed with the Supreme Court on behalf of Petra Baltazar, retired teacher, questions the
constitutionality of Act 187 which authorizes the liquidation of the old pension systems. Baltazar has petitioned for a
mandamus to compel the Government Service Insurance Board to continue paying the petitioner’s pension.
According to Jaranilla, the whole case hinges on whether the government may disregard its contractual obligations.
The case affects thousand of teachers and the petitioner is said to be backed by the Philippine Retired Teachers
Association, Ramon Diokno, counsel for the government, asks for the dismissal of the case in a long memorandum,
declaring that the government has already returned the amounts paid in by civil servants plus interest, and pointing
out that the pension funds were all in an insolvent state and the time would inevitably have come when contributors
would be unable not to collect their expected retirements pay but even their own contributions. He states that Act
187 represents a valid exercise of the police power inherent in every government to adopt any measure for the
protection of the public interest and that Baltazar’s right to a pension existed only as long as the law granting it was
in force. He denies that pensions are debts, liabilities, or obligations of the government.

April 1 . — Registration for military service opens for all young men born in 1917.

A committee of the American Retired Teachers Association of the Philippines makes public a combined protest and
petition recently sent to numerous officials in Washington by air mail. The document voices a protest against the
liquidation of the Teachers’ Retirement and Disability Fund on the basis of contractual obligation, moral obligation,
abstract justice, and adequacy of available finances to comply with the obligations of the Commonwealth
Government to the teachers. It points out that the United States government is paying in pensions to Filipinos retired
from various federal services an amount estimated at over $2,000,000 a year while the annual payments to American
teachers by the Commonwealth government amounts to only some $125,000 a year.

Dr. Rafael Palma in a radio address scores the indifference of some Filipino women to the coming plebiscite on
women suffrage. “We can not progress and prosper and maintain the ancient ways of thinking... We must throw
away silly conservatism and cumbersome traditions... Society will certainly receive immeasurable advantages from
the women’s acquisitions of the new right. ... If this is not to come now because of the indifference and indolence of
some of our women, what grave responsibility they will have before the nation and history!” Father William
Fletcher, Secretary to Archbishop Michael O’Doherty, is quoted as saying that the Archbishop is not opposed to
woman suffrage and has not instructed any priests to speak against the movement, but that he is not taking an active
part in the present discussions because he has made it a point not to interfere in political matters.

Announced at Malacanang that Secretary Yulo has granted Professor Llorente’s request for six months leave of
absence without pay.

Arthur Fischer, adviser on natural resources of the Commonwealth, leaves for the United States to join the Quezon
delegation in Washington.

April 2 . — Reported that Mapa has received many letters of congratulation from sugar men, financiers, and friends for
his speech against early independence. Sugar men are said to hold that Act 191 authorized the President of the
Philippines to ask for an economic conference but makes no mention of political readjustments. Others are reported
to say that President Quezon should know what he is doing and must have the interests of the country at heart. It is
also pointed out that most of his advisers in Washington are identified with the sugar interests.

A recent police census of Manila shows that Chinese in the city number 25,047 men and 6,166 women; Japanese
2,594; Americans 1,989; and Spaniards 1,170.

Fire razes the entire commercial district of Cagayan, Occidental Negros; damage is estimate at Pl.000,000.

The stock market drops sharply, closing at 147.07.

April 3 . — The Cabinet adopts a resolution expressing complete adherence to all the plans sponsored by President
Quezon and felicitating him on the continued success of his work.

At a caucus of members of the National Assembly it is decided to support the stand of President Quezon as a general
principle on motion of Assemblyman Oppus.

Mrs. Sergio Osmena, wife of the Vice-President, issues a statement declaring that Filipino women are “under
compelling obligation to support solidly the cause of women suffrage at the coming plebiscite.

Announced at Malacanang that President Quezon has asked that Floor Leader Manuel Roxas leave for Washington
as soon as possible.

The stock market advances to 154.00 for a gain of 6.93 points.

April 5 . — Between 7:00 and 7:30 A.M. (Monday) most of the Philippines listens to President Quezon’s address,
delivered from informal notes over the telephone from Washington to San Francisco, and to the Philippines by
short-wave radio, rebroadcast over KZRM, KZIB, and KZEG, and plainly audible in Manila. The hour was 6:00
P.M. Sunday in Washington. About five minutes of the time was devoted to woman suffrage and the rest to an
explanation of his recommendations for earlier independence. “Filipino women are not yet in full possession of their
rights and unless they make an early decision to take part in the national administration, it will be a long time before
all their rights are secured. I hope all Filipino men will be willing to seek the advice of and collaboration of their
mothers, wives, and daughters in public affairs just as they seek this in their private business.... The Filipino woman
is the equal of the best in the world and there is no reason why Filipino women should not enjoy all the rights and
privileges of women in more progressive countries”. As to his independence recommendation. President Quezon
states: “You have already been informed that 1 have recommended that the period for the granting of independence
be shortened so the Philippines may establish its Republic on December, 1938, or on July 4, 1939. I understand
some people have been surprised that I should have made that proposal at this time. Well, anyone who has followed
closely my public career should have expected me to do so. Moreover, it is well known that the majority of our
people in accepting the Tydings-McDuffie Law upon the assumption that no change would be permitted except with
the consent of the Filipino people.... As a matter of fact, it would appear that Congress feels it has the right at any
time to change trade relations regardless of the provisions of the Act. . . . Under these circumstances to continue in the
present status would simply cause the economic ruin of the Philippines. It is absolutely necessary that we be able to
place our trade relations with America on a more stable basis and there is but one way of accomplishing this,
namely, through a treaty between the government of the United States and an independent Philippine Republic. So
long as the Philippines remains under the American Flag, Congress will always feel at liberty to amend any of its
laws affecting any of the Philippine relations. But once we are independent, if we should secure a treaty from the
American government similar in terms to the provisions of the Independence Act regulating our trade with America,
Congress will have to respect that treaty during the time of its existence. And therefore I have proposed the
Philippines be granted immediate independence, or as short a time as possible, with the idea that there may be
entered into a treaty between America and the Philippines whereby trade relations between the United States and the
Philippines, as provided in the Independence Act, may be agreed upon in the form of a treaty between our two
countries. And I am hopeful that such a proposal will meet with no serious objection on the part of the government
of the United States. Moreover, I feel it will be possible to secure a special trade relation between America and the
Philippines after the three-year period. . . But don’t forget that I am prepared if necessary to get independence for the
Philippines even if I should fail to secure for our products the benefits of the market of the United States. The time
has come when the Filipino people must decide whether they shall be masters of their own destiny or not. If we are
not willing to assume all the responsibility of a free people, then let us quit talking about freedom and independence
and let us sell our birthright for one million tons of sugar.... Fortunately... the authorities in Washington are
concerned about the future of our people and they are trying to do every thing they can to find a formula whereby
we will be independent without serious injury to our economy. And I am here precisely to protect our country from

any possible unwise legislation that may bring harm to our people. I want you to have faith in me, and I hope you
will not embarrass my work here by sending protests before you know what you are protesting about.... Don’t be
panicky. Don’t be scared with anything that you hear or that is printed by the papers as to what might happen to the
Philippines. None of you is as interested as I am, not even the men who own the sugar factories or the men who own
the coconut factories or the tobacco factories — not one is more interested as i am in securing for the Philippines the
economic stability and the consequent prosperity for our people. Even though I have not a cent in any of those
industries, I am at least as interested as every one of you, for it is my duty to look after the welfare of our people.
Now I will sleep well after what 1 have said.”

Assemblymen and government officials generally endorse President Quezon’s stand as outlined in his address over
the radio. Some economists and business men question the wisdom of asking for full independence without
assurance of being able to retain existing benefits and others withhold comment. Judge Haussermann states that “if
President Quezon succeeds in getting ten years of free trade after independence, I see no objection to the plan... it
would be better if free trade were maintained for fifteen years. Mr. Mapa states that if President Quezon had
revealed his plans as completely as he did today before, there would have been less misunderstanding. Professor
Llorente state that President Quezon spoke of two objectives — the first, complete independence with a favorable
trade treaty invites no disagreement; the secong complete independence with or without such a treaty, is
objectionable. General Aguinaldo states that the speech '‘coincides exactly with my own views”. Vice-President
Osmena, speaking at Tacloban, Leyte, where he and a party of other government officials are opening the new
Abuyog-Baybay Road, praises President Quezon’s stand and urges the people to have confidence in him. “Being on
the ground, he knows better than anyone of us here the conditions prevailing in Washington and the possibilities
ahead of us.”

Col. Miguel Nicdao with a force of 150 enlisted men and 15 officers attacks the Moro outlaws led by Sultan sa
Kadingilan, entrenched in the Binidayan cota. The Moros are all armed and the cota being situated on a hill
surrounded by a heavy forest hinders the use of mountain guns and Stokes mortars. A private is wounded and four
Moros are killed when a group of the latter attacks the Army force from the rear.

The stock market moves irregularly lower, the index closing at 151.92, down 2.08 points.

In a two-day battle, some hundred Moros are driven out of their six cotas at Ganassi, Lanao, by a Philippine Army
force under Col. Miguel Nicdao and Capt. Rafael Ramos. Six Moros, including a woman, are killed and six others
wounded, the rest escaping. Two soldiers are wounded.

The stock market moves slightly upward, gaining .47 points to 153.39.

April 7. — Sixteen blocks, comprising some 2,000 houses, in the crowded Tondo district, Manila, are razed in a four-
hour fire, the worst since 1911, rendering an estimated 20,000 people homeless and doing damage estimated
P2,000,000. Only one death is reported but numerous people sustained injuries. The fire is believed to have started
in a kitchen and Fire Department officials state they were handicapped by low water pressure, the water main in the
district being too small. Government and private agencies unite in relief measures.

The army captures two of the cotas in the Binidayan district, but a bus loaded with soldiers retiring from the day’s
fighting, is ambushed, the driver killed and four enlisted men are wounded, the attack taking place at Madamba,
across the lake from Binidayan. Later the Moros burn the Paraba school house. Hesitating to attack the most
strongly fortified cota in the district. Colonel Nicdao has asked for reinforcements, while Moro chiefs are still
seeking to induce the recalcitrants to surrender. Maj.-Gen. Santos and Lieut. -Col. D.D. Eisenhower fly from Ormoc,
Leyte, to the scene of operations. Moro deaths are estimated at 30 so far.

The Manila Stock Exchange creates fifteen new seats prices at P45.000, the move being interpreted as designed to
centralize all stock transactions.

The stock market continues to advance irregularly for a total gain of 2.75 points o 156.14.

Prominent members of the National Federation of Labor, who refuse to have their names revealed, are reported to
have started a move for President Quezon as the first President of the future Philippine Republic.

April 8. — Assemblyman Romero and Mrs. Romero leave for Washington on the China Clipper.

Manila gold stock averages drop 2.93 pouts to 153.21.

April 9. — General Santos returns to Manila after having given Colonel Nicdao cart blanche. He states the situation is
fully under control.

Registration for the women suffrage plebiscite on April 30 opens. Later reports indicate that the registration was
slow with discouraging results, except in Ilocos Sur and Baguio, totaling, it is estimated, less than one -third of the
300,000 affirmative votes required on April 30 to win the suffrage. The report has been spread that women given the
right to vote would have to pay the cedula tax, women leaders say are not discouraged but that a great handicap is
the lack of campaign funds. April 17 is the second and last registration day.

The Manila stock prices drop sharply, as all over the world following the canard that the United States would reduce
its price for gold, from fractions to 75 points, the gold share index at the Manila Stock Exchange sagging 7.06 points
to 146,15. Trading was heavy.

The United States

March 13. — At an American Legion farewell dinner in Washington, United States Commissioner Paul V. McNutt
states he is looking forward with “a spirit of high adventure” to the assumption of his post in the Philippines and he
will leave for Manila “with enthusiasm and deep interest to attend the birth of a new nation”.

Mrs. Aurora Quezon arrives in Seattle and leaves for Chicago in a private car attached to the rear of a railroad train.

March 14. — Press dispatches from Washington are to the effect that the Navy is indifferent to the retention of a
naval base in the Philippines after independence, preferring to regard Hawaii as its outermost line of defense.
Observers are said to believe that no fundamental revision of the Tydings-McDuffie Law will be undertaken by
Congress unless President Franklin D. Roosevelt and Commonwealth President Manuel L. Quezon agree on a
program which both would actively sponsor. It is believed a majority in Congress would favor shortening the
transition period if this were jointly urged by Roosevelt and Quezon, but this might entail economic provisions even
less favorable to the Philippines than the present set-up. Farm blocs would resist all changes favorable to the
Philippines. Republicans are noticeably apathetic to the entire situation and do not manifest a desire to resume the
anti-independence stand which many of them took prior to the passage of the Tydings-McDuffie Law. Some
observers think that the net result of President Quezon’s visit may be the organization of a commission.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1937). News Summary. Philippine Magazine, 34(5), 199-203, 231.

News Summary, Philippine Magazine: April 8 - May 12, 1937

News Summary
The Philippines

April 8 . — Assemblyman Joe Romero and Mrs. Romero leave for Washington on the China Clipper.

Manila gold stock averages drop 2.93 points to 153.21.

April 9. — Maj.-Gen. Paulino Santos returns to Manila after having given Colonel Miguel Nicdao cart blanche. He
states the situation is fully under control.

Registration for the women suffrage plebiscite on April 30 opens. April 17 is the second and last registration day.
First reports indicates that the registration was slow, totaling, it is estimated, less than one -third of the 300,000
affirmative votes required on April 30 to win the suffrage. The report has been spread that women given the right to
vote would have to pay the cedula tax. Women leader say they are not discouraged but that a great handicap is the
lack of campaign funds.

Manila stock prices drop sharply, as all over the world following the canard that the United States would reduce its
price for gold, the gold share index at the Manila Stock Exchange sagging 7.06 points to 146.15. Trading was heavy.

April 10 . — Adriano Rodenas, until recently teller and acting assistant cashier of the Insular Treasury, is found guilty
in the Manila Court of First Instance of malversation of public funds in the sum of P20.000, and sentenced to serve a
prison term ranging from eight to fourteen years, and a fine of P10.000, and to indemnify the government P20.000.
The accused will appeal.

April 11 . — After six hours of fighting the Philippine Army takes and demolisher the Makaguiling cota, most of the
outlaws, however, escaping. Two Moros were killed and two soldiers wounded.

Vice-President Sergio Osmena gives a ball in honor of Acting United States High Commissioner J. Weldon Jones at
Teachers Camp, Baguio.

April 12 . — Military registration which started April 1, ends today. It is believed from still incomplete returns that the
total will not reach the 148,000 mark of last year, although a larger number was expected from the population
estimates.

Through a ruse, and making use of underground passages, Moro outlaws regain control of the Binidayan cota, one of
the cotas taken yesterday by the Army and turned over to the municipal authorities.

April 13 . — Army officers are said to be planning to ask the National Assembly to amend the National Defense Act to
permit more severe punishment for non-registration. The Act provides for a penalty of not more than six months
imprisonment, but the courts have been imposing sentences as light as ten days on “slackers”. It is doubted that
registration this year will reach 100,000.

April 14 . — Announced that President Manuel L. Quezon has appointed Jose Paez and Paciano Dizon to the Manila
Harbor Board on recommendation of Secretary of Finance Antonio de las Alas.

Woman registration returns reach 212,172 with complete returns not yet received. Woman leaders express
themselves as confident that on the second registration day a 100,000 more will register.

The stock market drops to the lowest level since the boom started, closing at 134.06.

April 15 . — “Popular Front” directors and delegates meet with Emiliano Tria Tirana presiding, but with General
Emilio Aguinaldo, Judge Juan Sumulong, Bishop Gregorio Aglipay, Geronimo Santiago, and other leaders absent.
They adopt an early independence resolution, and a resolution asking P300.000 for relief of the Tondo fire sufferers
(P150.000 to be taken from the Belo Fund, P100.000 from the Charity Sweepstakes funds, and P50.000 from the
Rice and Corn Corporation which is alleged to have made “enormous profits selling rice to the poor”). The
organization also decide to take part in the May Day celebrations and to call a convention on July 4. Meetings will
be held and demonstrations in favor of early independence, but, it is explained, this is a platform policy and does not
indicate that the Popular Front is following the leadership of President Quezon.

Recalcitrant members of the Coalition who are reported to have sent a radiogram to President Quezon asking him to
return to the Philippines and put an end to what they call “radio -phone government”, are criticized by other members
of the Assembly and obstructing President Quezon’s work.

Vice-President Osmena speaking over the radio from Baguio urges women to register for the women suffrage
plebiscite stating that the issue of enfranchisement is too momentous to be placed on the narrow basis of sex
antagonism/

The Directors of the Nacionalista-Democratico Party meet and pledge full support to women suffrage and decide to
organize committees in Manila to assist in the campaign.

The Army recaptures the Binidayan cota, but the soldiers find the place empty, the Moros having again escaped.

Brig. -Gen. Vicente Fim, who returned from Mindanao yesterday, states that there is unnecessary alarm about the
Lanao situation. “The Army is after nothing but a bunch of outlaws,” he declares. “The Sakdal situation was much
more serious for it had political significance and involved people of much higher intelligence than the Moros we are
after”.

Announced that Fieut. Constancio de Zoza of the training cadre at Camp Dau, Pampanga, has been relieved of
further active duty with the Army for having been found guilty of manhandling and injuring a trainee who filed
charges against him.

Gold stock averages on the Manila Exchange go down to 128.71.

April 16 . — The League of Provincial Governors announces that is it “adheres unconditionally” to President
Quezon’s plan to shorten the transition period to independence.

Malacanang releases a proclamation of President Quezon declaring Manila in a “state of calamity” this making it
possible for the government to control commodity prices, it having been reported that there has been an
“unreasonable and conscienceless speculation” in land rents and foodstuffs in the Tondo dire area where 16,000
sufferers are without means of subsistence other than those furnished by various relief agencies.

Director of Health Eugenio Hernando instructs all health officers to start a general immunization campaign, the
increase of contagious diseases having cased alarm.

Secretary Jorge B. Vargas states that jails in Occidental Negros and Iloilo are jammed with young men arrested for
having failed to register for military service, while lists of names of thousands of others in Cebu and Leyte have
been submitted to the authorities. A plan is under consideration to assign the men to cadres as prisoners to work as
cooks and do other chores.

The Tribune publishes a plea of Ramon Lopez, wealthy Iloilo sugar planter, urging other planters to pay more than
the “pitifully low” and “starvation” wages of 35 to 40 cents a day now paid on most haciendas. He declares the
planters can afford to pay more than that out of their “enormous profits” and that they “must not wait until
discontent is goaded higher and labor, led by radicals, begins to destroy”.

The stock market again drops sharply to an average of 120.37.

The downward trend in the stock market is apparently halted and prices during the day are generally maintained and
some issues recover slightly, the average rising .19 of a point of 120.56.

The second day of registration for the women suffrage plebiscite opens.

April 19. — The Philippine Herald publishes a dispatch stating that the Tokyo Nichi-Nichi, Admiral Seizo Kobayashi,
Governor-General of Taiwan (Formosa), will visit President Quezon net July “with a view to explaining the so-
called southward policy of the Japanese government.”

Stocks advance sharply to an average of 132.68, up 12.12 points.

April 20. — Assemblyman Manuel Roxas who will leave for Washington Friday, is honored at a luncheon given by
Assemblyman Enrique Magalona and at an informal dinner in the evening given by Placido L. Mapa. He states he
has no information whatever, either officially of privately, regarding the discussions of Philippine -American affairs
in Washington, but pledges himself to do his best for the furtherance of Philippine interests in the United States.

Reported that Assemblyman Gregorio Perfecto has recommended to Secretary of Agriculture Eulogio Rodriguez the
purchase of homesites in the fire-swept are in Tondo for resale to the present occupants under the existing law
authorizing the purchase of estates for resale to tenants.

Stock prices again advance sharply for a gain of 10.40 points to an average of 142.72.

April 21. — Reported that the Central Stock Exchange, of which former Governor-General F.B. Harrison was one of
the Directors, is seeking amalgamation with either to Manila or the International Stock Exchange. The Central was
the third exchange to be established in Manila and the amount of business, it is said, does not warrant the existence
of three stock exchanges in the city.

Shares move irregularly during the day and the market closes at a price average of 142.24, down .48 of a point.

April 22. — Reported that Dr. H. Foster Bain has expressed the opinion in a report to the National Development
Company that due to lack of an adequate supply of coking coal the smelting of iron ore would not be economically
advisable. He also points to the large investments that would be called for and the limited needs of the Philippines
for iron. He suggests that the Philippines might exchange iron ore for pig iron with such countries as Japan and
India.

With reports still incomplete, the total of registered women voters reported to the Department of the Interior now
number 563,297.

April 22. — Gold stock average on the Manila Stock Market advances sharply for a gain of 14.95 points to 157.19.

April 23. — Assemblyman Roxas leaves for the United States on the Philippine Clipper. A caucus held prior to his
departure fails to elect an acting speaker and acting floor leader, as proposed by some, because of the lack of a
quorum.

Judge Sumulong and General Aguinaldo express approval of reports that the Tydings-McDuffue Act will be adhered
to in regard to seeking an international pact neutralizing the Philippines.

April 24. — Secretary of the Interior Elpidio Quirino instructs officials in his department that if any citizen of the
Philippines wants to give himself a title and call himself sultan, datu, or pang lima, that is his own business, but that
his title can not be recognized by the government under the Commonwealth Constitution. Leaders of two Moro
groups in Sulu have been making efforts to get the government to confirm the election respectively of the two sultan

who recently assumed the title. The Provincial Board of Lanao some time ago approved a resolution ruling that
present sultans might continue to use their titles, but that they could not transmit these to their heirs. The Quirino
ruling voids this resolution.

April 26. — The Cabinet approves the Tondo rehabilitation plans, providing for the construction of tenement houses,
streets, etc., at a cost of P260.000.

The Governor of Palawan is reported to have filed protests with the Bureau of Customs and the Philippine Army
against the violation of Philippine maritime regulations by poaching Japanese fishing boats who show no fear of the
police.

A branch of the Netherland India Commercial Bank opens office in the Filipinas Building, Manila, with C. Stigter as
Manager.

The New York Hotel and Bar and the Real Restaurant, old landmarks in Intramuros, burn down, and one American,
E.H. Bahr, who lived in the hotel, loses his life. The place was owned by J.M. Heery.

The market declines, closing at 152.92.

April 27. — U.S. High Commissioner Paul V. McNutt arrives in Manila with his wife and sixteen-year old daughter
and others of his party. Met by American and Filipino officials, and escorted by U.S. Army and Philippine Scout
troops, he lays a floral offering at the foot of the Rizal Monument and proceeds to “El Nido”, Dewey Boulevard
mansion owned by Attorney E.A. Perkins, his temporary residence, and receives the press. In answer to various
questions he states that he will base his policy on the Tydings-McDuffie Law and the assumption that there will be
no sudden changes in the law. He reiterates the view that economic independence should come before political
independence, and states that he means by that that "the government must have sufficient funds to maintain vital
services”. He suggests that independence is not a condition necessary to the consummation of a treaty might be
drawn up between the United States and the Philippine Commonwealth running for 15 or even 20 years. He refers to
crop diversification and the acceleration of mining development here as possible means of achieving economic
independence. The claim of some persons that other than American markets might be found, he characterizes as a
“pious Committee in Washington and states that it has the opportunity to do an outstanding piece of work. He states
that President Roosevelt is deeply interested in the work of Committee and in the Philippines and that no changes
are likely in the Tydings-McDuffie Act until after the Committee has submitted its report. He refers to former High
Commissioner Frank Murphy as a “personal and political friend” with whom he has discussed the Philippine
question “practically in its entirety”, and also that he talked very friendly. Asked whether he thought he and the
President could get along, he answers: “I don’t see why not. I am easy to get along with”. He states as to his powers
that the law and the instructions he has received from President Roosevelt (which were read in part by President
Quezon) are clear and that he will not interfere in local affairs. During the day he receives a radiogram of welcome
from President Quezon expressing regret that he receives official calls from Vice-President Sergio Osmena, Admiral
George J. Meyers, General Percy B. Bishop, and others, and returns the Vice-President’s call the same day. His
statements as published in the press are generally well received by officials and business men.

Loyal Moros are reported to be tearing down the cotas of Moro outlaws captured by the Philippine Army. A number
of the outlaws surrendered to the authorities last week.

The stock market sags further to 146.45.

April 28. — The Hongkong Clipper , carrying over 100,000 pieces of mail, most of which was transferred from
the China Clipper which arrived from the United States yesterday, leaves Manila for Hongkong, completing the
magnificent 13,000-mile skyway that brings the United States within a week’s flight of every important city in
China, and closing the last 715-mile gap in round-the-world air transportation. Th e Hongkong Clipper, which is a
little smaller than the trans-Pacific clippers, will play regularly between Manila and Hongkong. Regular passenger
service to China will be inaugurated tomorrow from Alameda by the Hawaiian Clipper.

Secretary Vargas, President of the Philippine Amateur Athletic Federation, in a telephone conversation with officials
in Tokyo informs them that the Philippines will not be able for lack of time and funds to take part in the proposed
1938 Oriental Olympics in Japan but that the Philippines will be ready to participate in 1940.

April 29 . — A late Thursday night fire on the Escolta destroys the premises of the Malabon Restaurant, T.J. Wolf &
Co., Inc., Manila Grafica, Inc., and damages the establishments of the Escolta Drug Store, Estrella del Norte, Puerta
del Sol, and several mining offices.

Seven new observation planes arrive from the United States for the Philippine Army.

The stock market average drops to 146.16 upon receipt of the news of Rep. Hamilton Fish’s resolution calling for a
reduction in the price of gold.

April 30 . — Polls for the woman suffrage plebiscite are open from 7:00 A.M. to 6:00 P.M.

May 1 . — Incomplete returns from all over the country gives a total of 431,539 affirmative and 42,554 negative votes,
more than satisfying the constitutional requirement of 300,000 affirmative votes. The total women registered was
591,563.

J.H. Marsman announces in London that a new $1,000,000 corporation, the Exploratie Maatschappij, is being
formed in Holland to explore and develop mining claims in Sumatra, Borneo, Celebes, and Java. The Marsman
interests already have a British company, Marsman Investments Ltd.

May 3 . — Gold stock prices on the Manila Stock Exchange move downward to 143.0 for a loss of 3.16 points.

May 4 . — An explosion in a fireworks factory at Polo, Bulacan, kills five persons, including two children, and
injuries a number of others.

May 5 . — Three Philippine Army soldiers stationed at Bayang, Lanao, who went to a nearby spring for water, are
ambushed by Moros, and two are killed, the other being seriously wounded. The outlaws escape with two rifles.

May 6 . — Secretary Vargas after a conference with Maj.-Gen. Paulino Santos, announces that a “relentless drive” will
be started against the Moros responsible for the killing of two soldiers in Lanao.

Secretary of Public Works and Communications Mariano J. Cuenco releases a part of the gasoline fund for the
maintenance of national roads and the construction of new roads especially in Mindanao.

The estimated sale of sweepstakes tickets for the draw and race to be held Sunday are placed at PI, 600,000 when
sales close, as against a quota set at P2,000,000.

A letter from Mrs. Franklin D. Roosevelt arrives belatedly expressing the hope that Filipino women will win the
suffrage.

A reception is given by Vice-President Osmena in honor of High Commissioner McNutt at the Manila Hotel.

March 7. — Secretary Vargas announces that President Quezon has secured the services of two raking U.S. Army
engineering officers to come to the Philippines to advise on power development here. The Manila Electric Company
is reported to have informed the government that its Diesel plants may be brought for P50,000,000.

May 7. — Insular Treasurer Antonio Ramos opposes the application of the P100,000,000 coconut oil tax proceeds to
the bonded indebtedness of the Philippines, stating that to do so would upset the bond market and lead the holders of
Philippine bonds to ask for prices above par. He states it would be better to use the funds for the promotion of

industrialization and economic development, and also for the national defense, especially if the transition period is
shortened. Secretary Quirino suggests that part of the money be used for a revolving find for municipal waterworks
and markets and a five-year road-building program. Budget Director Serafin Marabut also favors the use of the
funds for economic development and states they should not be used for ordinary and recurring expenses. Others
caution against the suggestion the money be used for building up a merchant marine as the merchant marines of
other countries everywhere receive huge and continuing subsidies.

Reported that the Far Eastern Oil Development Company will soon start extensive drilling in the Bondoc Peninsula,
Tayabas.

May 10 . — Announced at Malacanang that President Quezon has approved the action of the Cabinet in setting aside
P256.000 from the Gasoline Fund for Tondo rehabilitation work.

The Confederation of Sugar Cane Planters decides to send Salvador Benedicto to the United States to confer with
President Quezon and to represent the interests of the planters there.

Col. Frank Hodsoll, Managing Director of Warner, Barnes & Company, returns to Manila from a vacation and tells
the press he had several interviews with President Quezon in the United States and that he has full confidence in him
and in his advisers in safeguarding the welfare of the Philippines. “If it is finally decided to change the provisions of
the Tydings-McDuffie Act, I am sure the new program would be one calculated to bring increased benefits to this
country”.

May 11 . — The four Moros who ambushed thee soldiers at Bayang last week are surprised by a Philippine Army
patrol in Fian forest and killed in the subsequent fighting. The four were mere youngsters from 13 to 15 years old,
but were well armed, refusing to surrender and fighting like madmen, wounding one officer and four soldiers before
they were killed. Two other Moros of the Macaguiling outlaw band are killed by Moros friendly to the government.

May 12 . — A group of Assemblymen headed by Tomas S. Clemente of Sorsogon protest against the decision of the
management of the Philippine Charity Sweepstakes to eliminate 1,119 “consolation” prizes. Their stand is that in
view of the fact that the total sales are smaller than expected, all prizes should be proportionately reduced, but none
eliminated.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1937). History from day to day : The Philippines. Philippine Magazine, 34(6), 243-246.

Retrieved fro m https://arc hive.org/stream/acd5869. 0038. 001. umich.edu#page/n5/mode/2up.

News Summary, Philippine Magazine: May 13 - June 13, 1937

News Summary
The Philippines

May 13 . — The Philippine Curb Exchange, headed by Dr. Camilo Osias as President, is issued a permit. The new
exchange will deal in unlisted stocks and in small amounts.

Under-Secretary of Justice Jose P. Melencio rules that the Sakdalista, organ of Sakdal Party, may not use the mails
as it would be “ridiculous for the government to extend this privilege to a newspaper which seeks to overthrow it”.

May 14 . — According to the report of Auditor -General Jaime Hernandez, the first year of the Commonwealth was
the best year financially since 1925. 1936 revenue was P103,502,237.61 as against P82,-839,281.32 in 1935. The
budget was more than balanced, leaving a surplus of PI 1,1 36,044. 92, in spite of the fact that expenses were
P92.366, 192.69 as against P75.933.192.53 in 1935.

The National Interisland Airways inaugurates its landing field in Mandaluyong and christens its first plane. The
Company is capitalized at P100.000, and has four Cessna planes. It will engage in chartered flights. W. S. Price is
the President.

Dr. C. P. Romulo returns to Manila from the United States. He tells the press that if a proposal for earlier
independence reaches the floor of Congress, “we will get it”.

May 15 . — The drawing of lots for the second group of trainees to be called to the colors takes place today.

Reported that United States High Commissioner Paul V. McNutt has advised foreign consuls in Manila that in
accordance with the Tydings-McDuffie Act official communications intended for officials of the Commonwealth
government must be coursed through the office of the High Commissioner.

Assemblyman Cecilio L, Maneja files a bill providing for the appointment instead of the election as at present of
provincial governors and municipal presidents and vice-presidents.

May 16. — The Manila Port Terminal Company, a subsidiary of the Manila Railroad Company, begins operation of
the port service, handled by the Manila Terminal Company for the past fifteen years.

A cook, a baker, a laborer, an Army officer, and a young girl are among the winners of the big prizes in the
Philippine Charity Sweepstakes held today.

A. W. (“Deacon”) Prautch, organizer of the government’s rural credit system and of various anti-usury measures,
and one of the founders of the Protestant movement in the Philippines, dies of a stroke, aged 71. He came to the
Philippines as a civilian in 1898 and was for fifteen year s prior to coming here a Methodist missionary in India.

May 18 . — Assemblyman Eugenio Perez states that High Commissioner McNutt’s letter to foreign consuls in Manila
directing them to course their communications to the Commonwealth government through his office, is “uncalled
for” as they know their duties, but Assemblyman Tomas Oppus states he sees no reason for criticism as the action
may serve to correct some “slips” made in the pest. Philippine officials generally are said to welcome any
clarification of the High Commissioner’s powers, but some suggest that a distinction should be made between
foreign affairs and foreign relations in so far as the powers of the Commonwealth government are concerned as the
Commonwealth has relations of an international character in the International Postal Union, and various athletic,
educational, and scientific organizations and political organizations, like the Interparliamentary Union, as well.

Announced at Malacanang that Sergio Bayan, District Engineer of the Mountain Province, will succeed E.J.
Halsema as Mayor of Baguio Mr. Halsema resignation, submitted and accepted some time ago, takes effect on May
31.

The National Rice and Corn Corporation is reported to have made a net profit during the first eight months of
operation from April 24 to December 31, 1936, of around P2, 500. 000 or 121 per cent of the paid-up capital stock.

May 19 . — Secretary Jorge B. Vargas at a Cabinet meeting urges greater powers for the Commissioner of Mindanao
and Sulu, Similar to those formerly exercised by Governor Frank W. Carpenter.

Secretary of Agriculture and Commerce Eulogio Rodriguez states he will recommend the reservation of additional
areas of agricultural land in the Mountain Province for the protection of the Non-Christian inhabitants.

Assemblyman Perez returning to Manila from an inspection trip in Zambales declares that labor conditions in the
mines there are deplorable and charges the owners with non-compliance with the labor laws. He states he will
demand action of the Department of Labor.

Secretary of the Interior Elpidio Quirino announces that the appointment of Captain Fernando Fores as Chief of the
Manila Secret Service has been made permanent.

May 20 . — High Commissioner Paul V. McNutt in his first public address in the Philippines before teachers and
Baguio residents at Teachers’ Camp, advocates an adequate system of education to keep, protect, and strengthen the
democratic form of government which is “America’s greatest gift to the Philippines”. He praises the
accomplishments of President Roosevelt, stating “There was vigor where there had been weariness, unity where
there had been disunity, the power to act where there had been deadlock. The impression was driven home that there
was no vested interest so powerful that it could block the action of the government. What was done constituted a
perfectly overwhelming demonstration that the American government was master in its own house, that it was in
command of the situation, that it had untold resources and no hesitation whatever in using them”. He states that
though there are many dictatorships in the world today, the democratic system has not suffered in the old
democracies — Scandinavia, France, Switzerland, Holland, Britain, the Dominions, and the United States.

Secretary Vargas, President of the Philippine Amateur Athletic Federation designates Dr. Regino Ylanan, National
Physical Director, to attend the annual meeting in Tokyo of the Amateur Athletic Association of the Orient. He is
expected to insist that the PAAF can not participate in the Olympics proposed to e held this year in Japan because of
lack of sufficient funds.

According to the report of Secretary of Finance Antionio de las Alas, revenue collections for 1936 reached
P99,000,000, representing an increase of 38, 45 per cent over the preceding year. Customs receipts amounted to
P42,29 1,42 1.80 up 17 per cent; internal revenue collection to P56,591,599.89, up 20 percent; provincial and
municipal government revenue collections to P10,222,028.93, an increase of three quarters of a million pesos over
1935. The cedula tax collections amounted to P4,626,223.00, up 3 per cent.

Reported that the Philippine Chamber of Mines has furnished data to the Joint Committee of Experts in Washington
that investments in the Philippine mining industry as of March 31, 1937, amounted to around PI 08,460,000.

A fire destroys almost half of down-town Paracale, Camarines Norte, mine -boom town. Two persons are killed,
2000 rendered homeless, and damage is estimated at P700.000.

May 21 . — Reported that High Commissioner McNutt has circularized consular representatives in Manila informing
them that at official functions the High Commissioner takes precedence over the President of the Commonwealth in
the proposing of toasts.

Reported that various foreign consuls in Manila have referred that High Commissioner’s letter requiring that
communications to the Commonwealth government be routed through his office, to their respective foreign offices.
Some local students of international law state that consuls usually deal with local officials and that only duly
accredited diplomatic officials are authorized to deal with the central government represented in this case by the
High Commissioner. It is also stated that consular officials in case of emergency should be able to deal direct with
local officials, say in Iloilo or Cebu, without losing time by having to appeal to the High commissioner’s office in
Manila.

Mayor Juan Posadas refused to permit Manila labor leaders to hold public meeting to enlist support for the Filipino
labor strike in Hawaii. Reported that Secretary of Labor Ramon Torres has asked Resident Commissioner Quintin
Paredes in Washington to intervene on behalf of the strikers.

May 22 . — Secretary Quirino states that Marcial Kasilag, Commissioner for Mindanao and Sulu, has ample powers
but that what is hampering his administration is the failure of some departments to appoint representatives in
Mindanao with whom the Commissioner may consult direct as provided in the law.

Announced that the Philippines Herald and the other D.M.H.M. newspaper have been taken over by a new
corporation, D.M.H.M., Inc. — Jorge L. Araneta, President; J. Amando Araneta, Vice-President and Treasurer; and
C. P. Romulo, Ramon S. Araneta, and Oscar Ledesma, directors. The Corporation is the holding company of the
People’s Press, Inc., of which J. Amado Araneta is President and Romulo Vice-President. Mr. Romulo retains the
title of Publisher.

May 23 . — Rice dealers protest against the importation of rice duty-free by the National Rice and Corn Corporation,
interferes with the laws of supply and demand, deprives the dealers of business, and materially affects government
income. They state that instead of the P2. 42 1,551 netted by the Corporation last year, the government could have
collected customs duties of over P5. 000. 000 on the rice imported from Saigon and could also have realized around
P148.000 from sales-tax proceeds. Corporation officials state that the benefits to the general public by the
establishment of the concern can not be measured in terms of revenue foregone by the government.

May 24 . — Reported that Internal Revenue collections for the first quarter amounted to P2 1,409,747. 60 as compared
to P17, 650,719. 38 last year, an increase of over 21 %.

Prof. Vicente Sinco of the University of the Philippines and Pablo Canizares, as amici curiae in the case of Petra
Baltazar v's. the Insurance Board, declare that the liquidation of the Teachers’ Pension and Disability Fund as
provided in Act 187 is unconstitutional in their opinion.

May 25 . — The High Commissioner’s office issues a press statement signed by Wayne Coy, Administrative
Assistant, to the effect that in view of the confusion existing as to proper procedure in proposing toasts at official
functions a letter was sent to the foreign consuls in Manila stating that toasts should be offered first to the head of
the sovereign state in whose honor any function is held, and second to the President of the United States. If it is
desired to propose any further toasts, the High Commissioner should be toasted first as he is "the ranking official in
the Philippines”.

The Electoral Commission declares former Senator Jose Fuentebella, Assemblyman for the Second District of
Camarines Sur, ousting Luis N. de Leon who has held the position while the case was pending.

May 25 . — Justice of the Peace of Licab, Nueva Ecija, sentences Lucia M. Vda. de Tinio, wealthy landowner, to a
month’s imprisonment and to pay the aggrieved party, Gaudencio Lina, the amount of P39.30 for violating the
Tenancy law and appropriating the 15 % share of the rice crop due to the complaining tenant.

May 26 . — The Philippine Army announces that ten additional officers will be sent to the United States to pursue
advanced courses in military schools there.

May 27. — Dr. Romulo, publisher of the Herald, recently returned from Washington, states in a talk before the
Manila Rotary Club that President Quezon’s move for earlier independence is the result of “sober deliberation” and
not born of an impulse to “rock the boat”, but to bring about greater stability. He states that President Manuel L.
Quezon did not submit his proposal to Congress as that body would have acted upon it without delay and without
“wasting time on a supporting economic pact”, but to a joint group headed by Assistant Secretary of State Francis B.
Sayre who was acting for President Roosevelt, this committee being m a position to study the matter from all angles.
“While the economic issue is basic in Philippine-American relations, we should not lose sight of other factors which
will render impossible the complete separation of the two countries. President Quezon recently alluded to this when
he said that ‘independence does not mean a desire to part with America’ “. Arsenio Luz, responding, thanks the
speaker for his “carefully prepared address”, and states that as the issue is so vitally important, “affecting our very
lives”, it is natural that there should be diverse opinions and that those who dissent should feel it their duty to speak
out frankly and courageously, adding that he is sure President Quezon would welcome such a frank expression of
opinion.

Malacanang releases P150.000 from the Port Works Fund for beginning the work on the proposed P500.000 Central
National Airport on the shore of Manila Bay. The construction will be undertaken by the Bureau of Public Works.

Auditor-General Hernandez, orders the deduction of three per cent from the salaries of all government officials and
employees as their contribution to the new insurance system. The government makes an equal contribution
according to the plan.

Forty secret operatives are appointed to the intelligence division of the Philippine Army.

Maj. Gen. Douglas Mac Arthur tells the press on touching at Shanghai on his way to the Philippines: “We are
determined to stay out of trouble and equally determined to keep trouble away. Americans are still sympathetic
toward Filipino nationalistic idealism. After all, the Filipinos are a chip off the old block”.

May 28 . — The Board of Directors of the Philippine National Bank approves the proposal of Secretary of Agriculture
and Commerce Eulogio Rodriguez to grant loans to riceland owners at 7 % so they may in turn loan it to their
tenants at not more than 10%.

May 28 . — The Board of Regents of the University of the Philippines approves the plan of President Jorge Bocobo
for an armory-gymnasium to cost P250.000. The Board also designates A. E. Duggleby, prominent Manila mining
engineer, to head the Department of Mining Engineering at the University. He will receive only a nominal salary.

The Central Stock Exchange, organized last October and the third to be established in Manila, holds it last session,
the volume of business having proved insufficient for three exchanges.

May 29 . — A party of armed, uniformed Japanese, carrying belts of cartridges, is reported to have landed on
Camanca island, off Palawan, on May 19. They were traveling in a two-sailed ship with an auxiliary engine with a
crew of around fifty.

Reported that a New York state court of appeals has reversed o Philippine Supreme Court decision, and has awarded
approximately PI, 000,000 to Mrs. Idonah Slade Perkins, estranged wife of E. A. Perkins, prominent Manila
attorney. Complications are expected because of the doubt that any state court in the United States has authority to
reverse a Philippine Supreme Court judgement. It is stated that this New York court acted on the ground that Mr.
Perkins has never lost his New York residence and citizenship and that the New York law governs property rights
grown out of marriage.

May 30. — Maj. Gen. MacArthur returns to Manila. Also Assemblyman Felipe Buencamino and Leon Guinto,
Commissioner of Public Safety. MacArthur tells the press that President Quezon has been highly successful in the
United States. “He changed indifference into silence. He has made the Philippine question a live and vivid thing.”
The General predicts "the complete abatement of threatening destructive trade provisions now in the Tydings-
McDuffie act and the continuation of the present economic set-up for an indefinite time”. He states also that he does

not believe that “any country will pledge itself to use its armed forces to secure the integrity of independent
Philippines. That any nation will spend its blood and its treasure to defend Philippine shores and homes because
some other country may violate them is not within the realm of reality. . . . The only ones who will defend
the Philippines are the Filipinos” He states that the united States government and an overwhelming majority of its
people “desire national security for an independent Philippines and wholeheartedly support such action as may be
taken by the Commonwealth to perfect its own defenses. The American army and the American navy are rendering
invaluable assistance in developing our forces. They support our plans without equivocation. Pacifist organizations
are very vocal but the noise they make is out of proportion to their influence. A secure and neutral Philippine nation
will do much to secure tranquility in the Pacific and there is no doubt that the United States heartily and
overwhelmingly backs any reasonable steps to that end”.

May 31 . — According to the annual report of Vice-President Sergio Osmena, Secretary of Public Instructions, public
school enrolment last year was largest since the beginning of the American regime — 1,250,000 as against 1,200,91 1
in 1935. Teachers numbered 28,337 as against 27,397. P25,053,885.18 was spent for public education, or 19.51% of
the total expenditures of the central, provincial and municipal governments.

Dr. Manuel Carreon, Dr. Romulo, and Assemblyman Manuel Roxas are elected alumni representatives of the board
of regents of the University of the Philippines.

June 1 . — Celcdonio Salvador, acting Director of Education, reluctantly approves the three-shift plan for Manila high
schools, but disapproves the double-shift plan for the elementary schools as inadequate and hard on children and
teachers. Mayor Juan Posadas states that the decision makes o solution of Manila’s school problem hopeless as the
city can not spend more money en schools (35 % of the revenue already being devoted to educational purposes) and
that thousands of pupils will have to be turned away.

It is reported that the Bureau of Posts mode a net profit of P1.21 1,495.19 during 1936, an increase of 15 % over
1935. The gain is attributed to brisk sale of stamps including commemorative issues and to increasing activities of
the mining industry.

Gold averages drop 4.97 points to 141.61 as a result of renewed rumors of an impending change in the price of gold.

June 2. — It is reported that Customs collections in 1931 totalled P28.735, 114.15, 17.4 % more than in 1935, and the
best since the establishment of the service. The total foreign trade amounted to P497,602,664, an increase of 38%
over 1935. P202.252.349 constituted the imports, up 18%, and 295,350,315 the exports, up 56%. The favorable
balance of trade with the United States of PI 14,510,338 was more than enough, as usual, to offset the unfavorable
balance with the rest of the world.

Secretary Vargas, domestic sugar administrator, announces domestic sugar quotas for 1938 at 92,928 short tons and
the emergency reserve at 57,377 tons, and declares that for 1939 there will be no reserves established as there will
be enough reserve stocks on hand from previous years.

The Philippine Islands Antituberculosis Society is reported to have decided to build a group of more than twenty
buildings to be known as the Quezon Institute on Tuberculosis at a cost of PI, 500,000.

June 3 . — Andres Soriano announces the consolidation of certain of his mining companies under the Eastern
Development Co., Inc., increasing the capitalization from P2. 000. 000 to P15.000.000. Forty percent of this will be
acquired by a group of Negros capitalists headed by Placido Mapa and Warner, Barnes & Co.

Walter E. Olsen, prominent American business man, dies in Manila, aged 61.

June 4 . — The German steamer Oliva, bound for Singapore, returns to Manila after an explosion of celluloid cargo
and a fire some 150 miles out of Manila. One man was killed and buried at sea and six severely injured. The S.
S. Tjikarang and the S. S. F ride run rendered assistance.

Vice-President Osmena calls a meeting of education officials to discuss the school “crisis” and afterwards
announces that all schools which were opened last year will open next week.

June 5 . — Secretary Rodriguez and Secretary of Labor Ramon Torres and a number of bureau directors leave on
the Apo for a trip of inspection of the Visayas and Mindanao as a part of their program of “bringing the government
to the people”.

June 5. — Vice-President Osmena states that every child seeking admission to school next Monday will be admitted.
Part of the necessary funds will be obtained from the National Relief Board and the rest from the City funds.

Dr. H. F. Bain, Commonwealth mining adviser, submits a report to the National Development Corporation
estimating the Philippine coal reserves at 45,000,000 tons and urging the operation by the government of the Uling
(Cebu) and Malangas (Zamboanga) deposits.

June 6. — Dr. Y. T. Tu, new Chinese Consul General, arrives in Manila; also General Tsai Ting Kai, famous former
commander of the Nineteenth Route Army who comes for a visit of several months.

Amando Avancena, prominent sugar planter, and Dr. Jose Mirasol, technical adviser of the Confederation of Sugar
Cane Planters, are reported to have started a movement among the Iloilo and Negros people to ask for the
continuation of the Commonwealth government. They believe the Islands not ready for independence and that most
Filipinos know this but are afraid to speak.

June 8 . — Former Governor-General F. B. Harrison and his wife and daughter, Andres Soriano, Enrique Santa Maria,
and other prominent persons leave Manila for Europe today. The Harrisons may return next December, but in the
meantime Mr. Harrison has relinquished all his business directorships.

June 9 . — High Commissioner McNut tells the press that he considers the matter of his two consular circulars closed.
As for consular communications he states those concerning international matters and the United States government,
will have to be sent to him, communications concerning purely local affairs may be directly addressed to the offices
affected.

According to an announcement by Secretary Vargas, President Quezon last night, by radio telephone, disapproved
the action of the Cabinet extending the permit to government employees teach in private schools as unconstitutional.

Assemblyman Juan Luna introduces a bill designating members of the Assembly as “Senators”.

June 10 . — The Rodriguez-Torres party takes cognizance of the existence of rampant smuggling of aliens into the
Philippines through southern waters, and Secretary of Labor Ramon Torres states measures will be taken
immediately to curb this illegal activity.

Announced that President Quezon has authorized the Interisland Airways Company to operate an airplane service
without any fixed routes, this being the first exercise of the authority granted him by an Act of the National
Assembly to grant such a permit without legislative franchise.

Vicente Singson Encarnacion, President of the National Rice and Corn Corporation, is reported to have asked
President Quezon to add another P2,000,000 to the present paid-up capital of an equal amount, for expansion of its
activities. Later it is reported that the National Development Company, according to the action of the Board of
Directors will subscribe to P2, 000,000 worth of stock of the’ Corporation. Part of the money will be spent in
erecting a large grain elevator in Manila to hold huge stocks of rice.

United States bondholders petition a federal court m Hartford, Connecticut, for the reorganization of the Philippine
Railway Company, a Connecticut corporation. They hold it is insolvent. The company has $9,000,000 in
outstanding bonds and owes the Philippine Government $6,000,000.

June . — Secretary Vargas receives a telegram from Resident Commissioner Paredes stating he will look into the
Honolulu Filipino strike on his way to Manila with the joint committee of experts.

The National Transportation Board designates three roads as national highways the road to Biac-na-bato, Bulacan;
the road traversing Mount Makiling, Laguna; and Cebu-Dalaguete road. The Board has also decided to declare as
national highways all roads leading to military camps, whether American or Filipino.

Heirs of the late Luis Perez Samanillo form a new P3.000.000 corporation under the name of Luis Perez Samanillo,
Inc. The company will engage in general business including import and export.

Francisco D. Reyes, of the Bureau of Science, noted chemist, dies of a heart attack, aged 53.

June 12 . — High Commissioner McNutt is guest of honor at the Filipino Veterans’ Association fiesta at Kawit given
by General Emilio Aguinaldo in commemoration of the declaration there of Philippine independence 39 years ago.
Commissioner McNutt emphasizes the visit is non-political. Besides Commissioner McNutt, Major-General Lucius
R. Holbrook, Commanding General of the Philippine Department, and Rear-Admiral Geo. J. Meyers, Commandant
of the 16th Naval District, are also among the guests. Vice-President Osmena was invited but is out of Manila on
inspection. Bishop Gregorio Aglipay reads an invocation alluding to “social, religious, and economic, and political
slavery in which we have sunk”. General Aguinaldo emphasized that the Veterans’ Association is not a political one
and that “if sometimes our association intervenes in a political activity, it is limited to the task of securing early
independence for which our comrades fought and fell in the battlefield.” As the last speaker, in a brief address, High
Commissioner McNutt states that "the United States sought independence from the tyranny of a nation. Philippine
independence means merely the physical separation of two friendly nations. There has never been tyranny.” He
points out that the United States has only the most friendly interest in the Philippines and that it proposes to establish
economic stability before political independence.

The Insular Treasury pays the National Development Company P9, 000,000 completing the first P10.000.000 capital
investment of the government.

June 13 . — Governor Emilio Gaston of Occidental Negros dies in Manila of cancer after a long illness, aged 57.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1937). News Summary : The Philippines. Philippine Magazine , 34 (7), 291-295.

News Summary, Philippine Magazine: June 14 - July 13, 1937

News Summary
The Philippines

June 14 . — Captain Bonner Fellers, member of the U. S. Military Mission, who accompanied President Quezon to the
United States returns to Manila after a short vacation in Russia. He tells the press: “Anybody who believes Russia is
not making a success of its experiment, is crazy! Russia is a howling success! I traveled throughout Russia,
including 6,000 miles in Siberia, and from the train windows I noticed a building boom everywhere. I tell you, the
Russians are just going places! There is no such thing as hunger or unemployment in Russia. There is a great deal of
construction work, including military preparations. Oh, they are building an army all right!” “But we can lick them,
can’t we?” asks a reporter. Captain Fellers bursts into a loud guffaw, and exclaims, “I would like to see who can lick
’em”.

Dr. Regino Ylanan returns to Manila. He states that the Far Eastern Olympic Games under the Amateur Athletic
Association of the Orient at Osaka will be held whether the Philippines will participate or not, but that two officials
of the A.A.A.O. are coming to Manila to make further negotiations for Philippine participation.

June 15 . — Twenty thousand twenty-year old trainees, drafted from the 180,000 registrants last year, complete their
five and a half months of training in 128 training cadres throughout the Islands and become the country’s first
reserves. Next month another group of 20,000, selected from among 139,000 registrants this year will begin their
five and a half-month training.

High Commissioner Paul V. McNutt at a banquet given in his honor by former service men, pays a glowing tribute
to the American “old-timers” in the Philippines who “not only brought the Philippines under the American flag, but
who have done so much for the development of the Islands.”

June 16 . — Felipe Buencamino tells a group of Assemblymen that plans have been made on the basis of
independence on July 4, 1939, with an allowance of fifteen years from that date for necessary economic
adjustments.

June 19 . — Protest of the Dutch government to the State Department discloses a Philippine violation of the London
sugar agreement in the dumping of 4,000 tons of reserve sugar in Hongkong at one -third below the market price.
The High Commissioner suggests to the President of the Commonwealth through his Secretary, Jorge B. Vargas, in
his capacity as Domestic Sugar Administrator, that further such shipments should be prevented. Secretary Vargas
states he will do so, although the Commonwealth government has not yet been officially informed of the agreement.
An unofficial copy in possession of the High Commissioner provides that, though the agreement will not go into
effect until September, 1937, “signatory governments will maintain the spirit of the agreement until that date.”
Assemblyman Felipe Buencamino states it is his understanding that the Philippine Assembly must pass a ratifying
act.

Vice-President Sergio Osmena, Secretary Vargas, Maj.-Gen. Paulino Santos, and other high officials attend the
ceremonies in Cebu upon the official presentation of the military airplane, “Spirit of Cebu”, a gift of the province to
the government.

June. 20 — Speaker Gil Montilla and his daughter, Mercedes, return to Manila. He tells the press that he foresees
early independence with a reciprocal trade pact and states that “if the Negros sugar planters who are opposed to
early independence were given the assurance that it would come with adequate safeguards to protect the national
economy, he could not see how any Filipino could reasonably seek to block the movement. It would be the
realization of life-long aspirations, and would be a decided improvement over the Tydings-McDuffie Law.”

A mass meeting is held in Iloilo after a torch parade in protest against the proposed appointment of Alfredo Eugenio
for Mayor as recommended to President Quezon recently by Secretary of the Interior, Elpidio Quirino.

June 21 . — Speaker Montilla radiograms President Quezon endorsing Secretary Quirino’s recommendation of
Alfredo Eugenio for Mayor of Iloilo.

Disclosed that Commissioner Quintin Paredes has again written to local political leaders as he did more than a
month ago to a member of the Assembly urging amendment of the Constitution to pave the way for the re-election
of President Manuel L. Quezon. He states that independence in two years may not find favor with Congress in view
of the reports of opposition to it from the Philippines and the current belief in Congressional circles that
independence might prove more harmful than beneficial to the Islands. He also reiterates his wish to be relieved of
the commissionership and states he may run for the Assembly.

June 22. — Thirty-five businessmen, representing twenty-two important firms in Manila meet at a luncheon at Manila
Hotel under the auspices of the Philippine-American Trade Association and agree on a plan to submit their
representations at the forthcoming public hearings of the joint committee of experts. In the absence of Rafael
Alunan, President of the Association, Judge J. W. Haussermann, Vice-President, presides. The Association will act
as a clearing house and coordinating center for the various business interests. They will limit themselves to the
presentation of economic facts, leaving political questions alone.

June 23 . — Secretary Vargas announces that an inspection service is planned by the Domestic Sugar Administration
to check on the production and milling of sugar and to prevent over-production. In the meantime, he states, there
will be no further shipments of reserve sugar abroad, pending receipt of the official text of the London quota
agreement and a statement on it by the State Department. A cablegram has been received from Secretary of Justice
Jose Yulo, urging strict adherence to the London pact.

The government starts investigations of the reported flight of a mysterious airplane over Davao last Friday and the
movements of a Japanese ship in Lingayen Bay.

June 24 . — The Cabinet rules that Philippine oil deposits should be closed to private exploitation and development
until after the government has defined a policy on what to do with them.

Announcing a public hearing on the cost of gasoline next Monday at the Legislative Building, Assemblyman
Gregorio Perfecto, chairman of the committee on rate reduction of public utilities, states that in his opinion there is
no reason why gasoline in the Philippines should sell at a price four times that of the price in Japan. The local
managers of various oil companies have been summoned to appear before the committee.

Assemblyman Justino Nuyda of Albay states he will introduce a resolution calling for a legislative inquiry into the
rapid and “scandalously extravagant” promotions of army officers.

A letter from the Los Angeles Chamber of Commerce is published in Manila stating that that organization has
protested against the short notice given to submit its views to the Philippine-American joint committee of experts
and that it has declared “off-hand” that California business interests which are “greatly concerned in the trade with
the Philippines, “would be disposed to oppose” the 1938-39 independence proposals, but that this attitude might be
modified if they knew the reasons for the proposal.

June 25 . — Eight different Manila chambers of commerce submit a joint memorandum against the proposed increase
of retailers’ license fees by the Municipal Board. A “reasonable increase” in rates is not objected to, but the
proposed rates are excessive, it is stated, amounting in some lines of business to an advance of 850%. The
memorandum suggests that the Board consider “whether the time has not come for a general revision of the taxation
structure of the city along modern lines, distributing the burdens equitably in all quarters able to bear them without
disturbing the general progress of the capital”, and proposes in the mean time, pending such revision, “to retain the
present license fee scale subject to a 50% increase in every category, except in those for which no increase is
indicated in the Board’s proposed new scale”.

The Securities and Exchange Commission announces that “no galena or spahelrite ores of commercial importance
are indicated” in the properties of the Batangas Mineral Company, the announcement causing the price of the stock

to topple from P.42 to P.28. The Commission sent investigators to the mine because of the “sudden and sharp
fluctuations of the price of the shares”. “Our duty is to protect the buying public,” states Commissioner Ricardo
Nepomuceno.

Legislators interested in oil development, among whom are Speaker Montilla and Assemblymen Nicolas Rafols and
Ruperto Montinola, are reported to be opposed to the Cabinet ruling on the reserving to the government of oil fields.

Maj.-Gen. Santos denies unjustified promotions in the Army stating most of those promoted have served from ten to
fifteen years in the Constabulary. “The army still lacks officers. We have only one officer for every 30 men. The
United States has one officer for every 10 men.”

Secretary Vargas tells S. Sakamoto, member of the organizing committee of the Amateur Athletic Association of the
Orient, that the matter of sending a Philippine athletic delegation to Osaka next year will depend on whether the
Assembly will appropriate the amount needed for training, transportation, subsistence, and equipment expenses
(about P50.000).

John Joseph Russell, prominent Manila businessman, dies aged 69. He was bom in Manila in 1867, son of one of the
founders of the famous Russell & Sturgis firm, established in 1825, oldest American company in the Philippines.
His widow, Mrs. Socorro Moreno and twelve children survive.

June 26 . — Secretary Vargas announces that President Quezon has appointed Valeriano Gatuslao, Governor of
Occidental Negros to succeed the late Governor Emilio Gaston. Gatuslao has been Acting Governor since the late
Governor fell ill.

Secretary Rodriguez cancels the Crown Mines Baguio claims, the action being based on an opinion of Acting
Secretary of Justice Jose Melencio that all mining claims within the Baguio townsite are illegal. Other corporations
will also be affected.

J. H. Marsman and a number of others arrive in Manila on a chartered K.N.I.L.M. plane from Bandoeng, Java, given
special permission to land here by the State Department. The trip took approximately twelve hours. Mr. Marsman
tells the press there is no cause for fear of a drop in the price of gold.

June 27 . — The new Philippine Racing Club track at Santa Ana is inaugurated.

June 28 . — The Legislative inquiry into an alleged gas combine opens. Assemblyman Perfecto states that gasoline
sells for fifteen centavos a liter here which is about sixty centavos a gallon or four times the price in the United
States despite the fact that it enters the Philippines duty free. He states further that it sells at sixteen centavos a liter
in Manila and fifteen centavos in the provinces. Attorney E. E. Selph questions the authority of the committee to
institute the inquiry. Managers of the local corporations point to the high cost of the distribution of gasoline, and
state that prices are fixed by the home offices.

Malacanang announces that President Quezon has designated Provincial Treasurer Angel S. Tadeo temporary Mayor
of Iloilo.

The Army command decides on a redivision of the Islands into ten instead of five army districts.

The board of directors of the Batangas Minerals Mining Company issues a statement challenging the correctness of
the report submitted by the Bureau of Mines to the Securities and Exchange Commissioner which caused the latter
to denounce the Company’s stock as too highly priced.

Director of Education Dr. Luther B. Bewley returns to Manila after several months absence in the United States for
rest and medical treatment.

Luis Meneses, until recently executive officer and secretary of the Pension and Investment Board, is sentenced to
pay a fine of P3,350 with subsidiary imprisonment in case of insolvency and to pay the cost of the proceedings, for
violation of the law prohibiting public officers from being personally interested in any contract or transaction in
which he participates by reason of his office.

Vice-President Osmena orders the opening of new classes to accommodate 150,000 more children to school after
President Quezon approves a plan to advance PI, 000,000 from unappropriated treasury funds subject to refund by
legislative authority. A caucus of assemblymen passed a resolution pledging support of larger appropriations and
recommending release of sufficient funds to accommodate 250,000 children.

June 29 . — Secretary Rodriguez makes public a report on irregularities in connection with timber concessions in
Mindanao, naming a number of army officers and government officials who have obtained such concessions, and
proposing remedies.

Mariano Cu Unjieng, scion of a wealthy and prominent family, who was accused and convicted of estafa, loses the
last round of his fight for freedom when Judge Jose O. Vera of the Manila Court of First Instance denies his petition
for probation. He was prosecuted for estafa through falsification of Commercial documents at the behest of the
Hongkong & Shanghai Banking Corporation and was sentenced to from four to eight years imprisonment, being
convicted separately with Rafael Fernandez, former professor of economics in the University of the Philippines, for
an estafa of Pl,41 1,000 through the use of fake sugar quedans or warehouse receipts. Fernandez and others later
retracted their charges of Cu Unjieng’s complicity. The Supreme Court increased the penalty to from five to seven
years and the United States Supreme Court refused to review the decision. The trial established a record in all its
phases in Philippine courts. The trial began on October 30, 1931, and was completed November 3, 1933. More than
50,000 documentary exhibits were presented both by the prosecution and the defense, and stenographic notes
covered 22,923 pages. Judge Vera suggests in his decision that the accused seek executive clemency.

The Manila Daily Bulletin states editorially with reference to a recent suggestion of Charles Edward Russell that the
Philippines undertake to provide cotton for Japanese textile mills, that this is a “proposal to throw the Philippines to
the control of Japan.” “If the Philippines wish admission to the Japanese sphere of influence, or, to be more exact, to
the Japanese realm of control, cotton production would be a convenient start”.

June 30 . — A number of assemblymen launch a “school reform” movement that would shorten the present course in
the elementary schools from 7 to 5 years and in the high schools from 4 to 3 years. Others plan to push through a bill
providing for more systematic and more adequate financing of the schools.

Secretary Rodriguez releases a report on land-grabbing in Mindanao, accusing almost the same set of persons named
in the report on irregular lumber concessions.

July 1 . — The National Economic Council endorses plans for an independent currency system for the Philippines, a
central bank, and a merchant marine, the latter to begin with 5 ocean-going steamers. Drafts of the necessary bills
are in preparation.

Malacanang announces that President Quezon has, by a proclamation in New York, dated June 14, closed to
prospecting certain portions of Bontoc and Kalinga to safeguard the rights of the Non-Christian inhabitants.

July 2. — Maj.-Gen. Douglas MacArthur in a requested interview with the Philippines Herald points to the beneficial
by-products and the less obvious accomplishments” during the first Philippine Army training period. These, besides
the accomplishments in the technical phases of military training, demonstrate the soundness of the defense plan, he
declares. He refers to the improved physical condition of the trainees, increase in literacy, and their general
enthusiasm. He speaks of the rapidity with which the officer corps is mastering the new tasks in spite of obstacles.
The air corps has made commendable strides, he states, and the U. S. Navy Department is at work on plans and
specifications for the speedy torpedo boats proposed for the offshore patrol.

Secretary Rodriguez instructs the Director of Lands to authorize no claims on unsurveyed lands in Cotabato pending
the completion of present investigations into land -grabbing, illegal timber grants, and dummy corporations.

The Philippine Railway Company, which operates lines in Cebu, Iloilo, and Capiz, is placed under a receivership by
the Supreme Court on petition by Solicitor -General Pedro Tuazon on behalf of the Philippine government. G. J.
Kennedy, General Manager of the Railway, and Rufino Melo, Comptroller of the National Development Company,
are appointed receivers. A preliminary injunction is also issued to prevent “a race of creditors for preference. . .and a
multiplicity of suits, actions, attachments, etc.”

July 3 . — Reported that Dr. H. Foster Bain, adviser to the Bureau of Mines who left the Philippines recently, has
urged the government to interest large private oil companies in undertaking a thorough survey of oil possibilities as
the government itself does not command the necessary technical experience and the requisite capital, and it being
“an unwise field for the expenditure of public funds”. He has also recommended the liberalization of the corporation
law, permitting a corporation to acquire more than a 15 per cent interest in another corporation, which is the present
legal limit, and extending the lease period from 5 to 25 years. He suggests on the other hand that government
royalties be raised to 50 per cent of the net profits. As an alternative, he suggests that one or more private companies
be employed as contractors by the government in first exploring and later developing any fields present, the
companies to be paid for their services by an agreed percentage of the oil produced. “It is possible,” he declared in
his report, “and even probable that commercially important petroleum fields exist in the Philippines, but the matter
remains to be proved.”

Philippine sugar producers radio President Quezon expressing their opposition to the Jones sugar compromise bill
pending in Congress, particularly to the provision classifying the Philippines as a foreign country for the purpose of
quota allocation and taxation instead of an insular possession, and against the lack of a provision for the benefit
refund to the Philippine government as provided in the original bill.

Jose P. Laurel, Associate Justice of the Supreme Court, in reply to a circular letter sent out by Acting Secretary of
Justice Melencio, calling attention to the ruling of the Cabinet prohibiting outside teaching, declares that as a
member of the Supreme Court he refuses to be “dictated to” by any executive department. Later Secretary Melencio
denies that he gave the Justice any orders and characterizes the latter’s pronouncement as “bombastic”.

July 4 . — Former Justice Claro M. Recto, who was President of the Constitutional Convention, states in
a Tribune interview that the Cabinet ruling which prohibits government officials from teaching outside of their
office hours is based on an erroneous interpretation of the constitutional prohibition against government officials
engaging in other professions. “I do not think the Convention had in mind the idea that teaching is a profession.
What it had in mind was, for instance, that a secretary of justice, or city fiscal, or a solicitor-general could not run a
law office or a secretary of finance could not be the president or manager of a business organization. The purpose
was to insure a clean government”. He states the executive ban could not apply to members of the judiciary or to
legislative officials. Secretary Vargas is quoted in the press that the matter is “not a question of the independence of
the judiciary. ... It concerns cooperation in an administrative policy of the administration. I think and hope that
should the members of the Supreme Court be requested to cooperate in such a policy they would gladly do so.” In so
far as the permanent personnel of the Assembly is concerned, who are members of the Civil Service, they come
under the prohibition, he declares.

July 5 . — In a Fourth of July (observed on Monday, July 5) address, High Commissioner McNutt states that “the
independence, won and maintained by force of arms in America, is to be given freely to the people of the
Philippines in recognition of their capacity for self-government and their pledge of adherence to democratic and
constitutional principles. . . . Lip homage is not enough. Formal acceptance will not suffice. Nothing short of the
substance of democracy will satisfy those responsible for the independence program or give validity to the
enterprise”.

July 7. — The Cabinet endorses a proposal of Secretary Rodriguez to forbid officials from acquiring public lands
without previous authority from their superiors.

Reported that a number of members of the judiciary and of the Assembly will give up private teaching as a gesture
of cooperation with the executive department for greater efficiency in the government service. It is stated that Justice
Laurel has already given up his law teaching and that he resented only the “wrong approach”.

July 8 . — Reported that High Commissioner McNutt has been advised by the State Department to see to it that there
will be no further ground for complaints of violation of the London sugar agreement.

In his annual report, Maj.-Gen. Santos states that of the P15,960,140,12 appropriated for national defense
expenditures during 1936, P12, 383,465. 80 was expended, leaving the balance available for the present year. He
praises the efficiency of the officer corps, which, he declares, is short-handed.

July 9 . — High Commissioner McNutt announces the application here of the U. S. Neutrality Law which prohibits
any activities which might be construed as favoring one side or the other in the Spanish conflict, including the
soliciting of contributions except for medical aid and food and clothing, in which case, however, permit must be
obtained from the State Department and monthly reports made of the amounts collected and their exact disposition
under oath.

Securities and Exchange Commissioner Nepomuceno postpones until October 15 the date of the effectiveness of the
rule requiring 60 per cent cash and 40 per cent margin in brokers’ accounts instead of the 50 per cent heretofore. The
rule was to have gone into effect on the 15th of July and postponement was requested by brokers who pointed out
that the application at this time would force many sales at the prevailing low prices.

W. Turner, new British Consul-General for the Philippines, arrives in Manila. He was stationed in Peking for some
20 years, was for 2 years in Hawaii, and before coming here for a half year at Yunanfu, South China.

July 10 . — Despite the Exchange Commissioner’s decision to permit the continuation of present margin accounts, the
Manila gold stock index declines slightly to 126.64, down 1.46 points.

July 12 . — A group of American educators on the way to the educational conference in Tokyo next month, arrives in
Manila and a program of entertainment is arranged for the members. Vice-President Osmena in a brief address to
them states that High Commissioner McNutt’s remarks on democracy were meant to be general but were mistakenly
understood to imply that democracy in the Philippines was one of form rather than substance. He declares that
democracy is not a straight-jacket and that actual conditions and needs of a country must be taken into consideration
and principles adapted to changing needs and circumstances.

July 13 . — Secretary Vargas in an address at the weekly student convocation of the University of the Philippines
gives examples of government policies showing there is “no lack of the substance of democracy in this country”. He
states that President Quezon is a “very democratic man” and that “anybody intimate with the inner workings of the
Assembly” knows that while it has heeded the President’s recommendations of national importance and true
cooperation exists between the executive and the legislative departments, “many recommendations of the President
have been disregarded by the Assembly or left without being acted upon”.

The stock market sags further to 1 16.28, down 4.10 points.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1937). News Summary : The Philippines. Philippine Magazine, 34(8), 339-343.

President’s Month in Review: September, 1937

President’s Month in Review: October, 1937

President’s Month in Review: November, 1937

News Summary, Philippine Magazine: October 13 - November 12, 1937

News Summary
The Philippines

Oct. 13 . — Finance Minister H. H. Kung, in Manila en route from Europe to China, tells the press during a reception
in his honor at Malacanan that world opinion is squarely behind China and that he does not think Germany or Italy
will give active assistance to Japan in its invasion of China. He denies the news report that Chancellor Adolf Hitler
proposed to him while he was in Berlin that China join the German-Japanese anti -communism pact. He states that
the “Japanese have a believe, founded in religion, that they are a divine race chosen to rule not only Asia but the
world”. “If Japan is attacking China because of ‘communism’, why does it not attack Russia?” He expresses
satisfaction with the results of his efforts to negotiate loans and credits in America and Europe.

Oct. 14. — Kung leaves Manila for Hongkong on a specially chartered Pan-American Clipper, making one false start
and returning, reportedly to confuse possible pursuit, as he carries important papers and feared the Japanese
blockade might result in their seizure if he went by steamer.

Oct. 15. — President Manuel L. Quezon replaces thirty provincial governors who are running for reelection, retaining
thirteen others in their positions who are not candidates.

Ambassador John Van A. MacMurray, chairman of the Joint Preparatory Committee on Philippine Affairs, in
extemporaneous remarks before the Philippine Columbian Association, states that America’s main objective is
ultimately to make the Philippine Commonwealth a Philippine Republic and an independent economic unit. “Our
report will not please the extremists on both sides. It may not meet with the approval even of the moderates. But we
can assure you that we are exerting all efforts to submit a report which will help to conclude America’s work here
with credit to America and for the lasting good of the Filipino people”.

The National Development Company incorporates the National Food Products Corporation with a capitalization of
P2.500.000, 51% of which will be subscribed to by the Development Company and the rest offered to the public or
to local governments. Gregorio Anonas is acting general manager.

Sir Hughe Knatchbull-Hugessen, British Ambassador to China, recently wounded by the Japanese, leaves Manila for
the Netherlands Indies to continue his vacation.

Oct. 16. — Reported that U. S. High Commissioner Paul V. McNutt has initiated a proposal to make Manila the seat
of the Nine-Power Conference with the hearty support of President Quezon as part of a plan to make Manila the
“Geneva of the East”.

The second regular 100-day session of the National Assembly opens.

Oct. 18. — President Quezon, addressing the Assembly states, “If we want independence at any cost and are ready to
take all the consequences — the dangers as well as the advantages of independent national existence — let us have it
not later than 1939. If, however, we are fearful of the possible threats that independence may offer to our national
security, and we would rather remain under the protecting wing of the United States, then let us leave the final
determination of our future to coming generations and not deceive ourselves with the groundless hope that by 1946
every danger will have vanished. . . I can see no valid reason why, if the Philippines can be given independence in
1946, she may not have it in 1938 or 1939. . . Any obstacle which would vitally affect the chances of successful and
lasting independent nationhood in 1939 can not be overcome by 1946. . . We can not be hesitating indefinitely. . . .
Our duty — the duty of the Executive and Legislative branches of the government — is plain. Under the Independence
Act and the Constitution, the Government of the Commonwealth has been established to prepare the country for
complete independence. Our people alone by their own choice and direction can command us to take a different
course. Since the news of my proposal to have the transition period shortened was published, voices in opposition to

it have been heard both in public and private. Let me say in all earnestness to those Filipinos who believe in good
faith that the security, liberty, prosperity, and peace of our common country lie in some sort of political partnership
with the United States rather than in complete independence, they should say so frankly and come out courageously
and in the open with an alternative plan, instead of merely adopting dilatory tactics in the belief that when the 4th of
July, 1946, shall have arrived, some unforeseen event will prevent the establishment of the Philippine Republic.
They have nothing to fear; there is here freedom of thought and of speech, and one may be as much a patriot
advocating some other political status for the Philippines as favoring complete independence so long as in so
advocating he is inspired not by selfish motives but by what he honestly believes is for the common weal. As long as
the essentials of freedom are not sacrificed — and they must not be sacrificed under any consideration — the formula
for securing and enjoying it may well be debated upon. . . . After this Committee (the Joint Preparatory Committee)
shall have submitted its report, it is my purpose to reiterate my petition that the granting of complete independence
to the Philippines be advanced either to the 30th of December, 1938, or to the 4th of July, 1939, unless the National
Assembly, during its present session, should express a contrary opinion. . . .” The Washington Post states later in
regard to this address: “President Quezon s plea for earlier independence is strangely obscure and he is apparently
interested in arousing doubts in the minds of the Filipinos as to the wisdom of the course set now or in the future.
His real stand is disclosed by his insistance on continued trade relations with the United States”

Oct. 19 . — Assemblymen Gregorio Perfecto, Pedro Gil, Pascual Azanza, and Antonio Villarama introduce a
resolution advocating the shortening of the transition period to independence.

President Quezon sends the reappointment of Mayor Juan Posadas of Manila to the Commission on Appointments
of the Assembly. His 3 -year term expires tomorrow.

President Quezon states that if it were true that only he could run the government, he would not hesitate to ask
Congress for a law authorizing the appointment of American governor-generals again. He states the outside world
would look with disfavor on a change in the Constitution and a second term for him as following the example of
some of the South American republics.

Oct. 20 . — Assemblyman Tomas Cabili of Lanao expresses opposition to the shortening of the transition period.

President Quezon states at a press conference that while he is not in favor of amending the Constitution to permit the
reelection of the President, he would favor an amendment reestablishing a two-chamber legislature as this would
result in better considered legislation and a one -chamber legislature is, on the one hand, more easy to control, while,
on the other, if control is lost, the situation becomes more chaotic. He states he would favor a senate the members of
which would be elected nationally and not by districts, with proportional representation of minorities. Such a body,
he states, would also be a training field for national leaders and candidates for the presidency. He would have the
campaign expenses met out of party funds in order to give unwealthy candidates a chance.

Oct. 22 . — The Assembly decides to postpone action on an early independence resolution until the report of the Joint
Preparatory Committee has been submitted, on the motion of Pedro C. Hernaez of Occidental Negros who
emphasizes the impropriety of taking action at this time.

The Board of Regents of the University of the Philippines accepts a land grant of 4,160 hectares at Lamitan,
Zamboanga.

Oct. 23 . — President Quezon names two U. S. Army engineers — Cap. High J. Casey and Cap. Lucius DuB. Clay — as
advisers to the Commonwealth on hydro-electric power projects.

Oct. 25 . — Placido L. Mapa, critic of the earlier "’dependence proposals, is elected President of the Philippine Sugar
Association to succeed Rafael R. Alunan.

The Committee on Appointments confirms the reappointment of Mayor Juan Posadas.

Announced at Malacanang that Major Walter H. Loving, who organized and for many years directed the Philippine
Constabulary Band, has been called back to active duty. He retired in 1921 and is now in the United States.

Oct. 27 . — Salvador Araneta, prominent Manila lawyer, at a meeting of Yale and Harvard alumni, attacks the earlier
independence plans, stating that Japanese economic penetration would result in a situation where a Japanese
ambassador would dictate the policies of the government here with the National Assembly performing the functions
of a rubber stamp. President Quezon, who is present, delivers a vigorous “off-the-record” statement, again to the
effect that the Philippines could accomplish little more in ten (or now eight years) than in two.

Bureau of Land officials declare that Japanese land holdings in Davao have increased by more than 4,000 hectares
during the past year, now totalling between 65,000 and 70,000 hectares, the increase being accomplished chiefly
through Filipinos and through intermarriage with non-Christian native women.

President Quezon names Provincial Treasurer Lorenzo Palileo Governor of Cotabato to succeed Cap. Jose Mortera,
and Ciriaco Raval Governor of Lanao to succeed Maj. Rafael Ramos. Raval is Administrative Assistant to the
Commissioner of Mindanao and Sulu. He states at a press conference that he will not interfere with the use of Moro
titles, as erroneously reported, but that Moro government officials will be recognized in accordance with the offices
hold and not in accordance with their Moro titles.

Oct. 28 . — President Quezon names Deputy Collector of Customs Jesus Obieta acting Insular Collector.

Oct. 29 . — Famine threatens Nueva Ecija as a draught begins to effect some 50,000 hectares of rice lands.

Oct. 30 . — The Philippine Army flying school at Camp Murphy graduates its first four flyers. Lieut. William Lee,
U.S. Army, heads the school.

Oct. 31 . — A meeting held under the auspices of the League for the Defense of Democracy (Manila) adopts a
resolution condemning Japan’s aggression in China and urging the people of the Philippines to support any action
that may be decided upon by the League of Nations, the Brussels Conference, or the United States government to
halt Japan’s criminal course of conquest. The resolution declares that the situation “constitutes a warning to all
liberty-loving people everywhere, but particularly to the people of this country whose own beloved land lies directly
in the path of the juggernaut of the Japanese militarists”. Another resolutions is adopted calling for the appointment
of a committee to consider means of applying a peaceful boycott against Japan.

The Manila Police Department tests four radio patrol automobiles introduced for the first time.

Nov. 1 . — President Quezon submits a budget to the Assembly calling for P76,296,207 for next year, exceeding this
year’s expenses by P9, 585,426. Virtually all the executive departments have been allotted substantial increases.
Military outlays, including appropriations for military public works such as camps, barracks, landing fields, etc.,
reach around P25,000,000. The P250.000 Belo Fund is eliminated but P150.000 is set aside for the hire of expert
service. In a message to the Assembly, President Quezon urges the abolition of the cedula tax which gives the
government an annual P4, 000, 000, as this is a matter of justice to the poorer classes and will "close forever a chapter
in the history of taxation in the country that brought no honor to this government and caused untold hardship to the
majority of our people”. He states he will recommend the appropriation from the accumulated surplus of the
consolidated general fund equal to the amounts that will be lost to the provinces and municipalities until a substitute
form of income is found.

Brig. -Gen. Creed F. Cox, U. S. Army (retired), former head of the Bureau of Insular Affairs, arrives in Manila to
become adviser to the Commonwealth government.

Nov. 2 . — President Quezon names Maj. Eriberto B. Misa Director of Prisons, succeeding Maj. -Gen. Paulino Santos,
now Chief of Staff, Philippine Army. Misa has been acting director for some time.

Nov. 3 . — Reported that President Quezon may ask the Assembly to make Manila a free port for the transshipment of
goods to other Oriental ports. In a press conference he states he believes birth-control agitation “unpatriotic” as the
country needs a larger population to become strong for defense. He states he believes the population will mount to
25,000,000 in another 15 years and that the maximum should be around 50,000,000. Told that efforts are being
made to secure the extention of American citizenship to Filipinos now in the United States (some 60,000), he states
he would have no objection to this. He also announces that the high command of the Philippine Army will be
rotated, with the tour of duty of the chief of staff limited to three to four years as in the United States. This
“democratizes” an army, he states.

Nov. 5 . — A resolution is filed in the Assembly asking President Quezon to retain the services of Maj.-Gen. Douglas
MacArthur as military adviser and to direct that his name be carried on the Philippine Army rolls until his death.

Nov. 7. — President Quezon attending an alumni banquet as San Juan de Letran rebukes the Dominican Fathers for
playing General Franco’s march when he entered the hall, declaring that the Filipinos are neutral and should not be
drawn into domestic political fights of Spain.

Nov. 8 . — Assemblyman Agustin Kintanar of Cebu introduced a bill providing for an appropriation of P40,000,000 to
purchase Japanese holdings in Davao for subdivision in 10-hectare lots at cost to Philippine citizens.

Nov. 9 . — General MacArthur receives formal notice that upon his retirement from active service, December 31, he
will be given the rank of a full (4-star) general, an honor so far accorded to only eight other men in the history of the
United States — George Washington, U. S. Grant, William P. Sherman, Philip H. Sheridan, John J. Pershing, Tasker
H. Bliss, Peyton C. March, and C. P. Summerall.

Nov. 10. — Dr. Manuel Xeres Burgos, one of the leading figures of the Philippine Revolution and a member of the
Malolos Revolutionary Congress, nephew of the patriot and martyr. Father Jose Burgos, dies in Manila, aged 86.

Nov. 11 . — High Commissioner McNutt states in an Armistice Day speech that “it is the will and purpose of the
American people to prove that to save themselves from the disorders of this age men need not surrender their birth-
right for a mess of fascist, communist, or nazi pottage”. He states that "it is not by diplomatic formulas and by
conventions and treaties that the present crisis can be overcome, but only by the moral unity of all those nations
which wish to keep the peace and preserve for themselves and their children the standards of liberty and human
decency”.

Representative B. B. Harlan, Democrat, Ohio, a Manila visitor, states that if the Filipinos want independence in
1938 or ‘39 ’’there is a good chance they will get it”. He states that Japan is using the Philippines as a pawn in
connection with the anti-communist pact and that both Germany and Italy will expect greater ascendancy in the
Pacific and that the Philippines may sooner or later go to Germany or Italy. Asked what the United States would do
in such a case, he answers, “Nothing”. “The Philippines is too far from home for us do anything, once the Islands are
independent. When the United States pulls out. it will be for good.” He states he is not optimistic about the Islands
being able to secure a continuation of present trade relations after the transition period.

A typhoon passes close to the north of Manila and does considerable damage. Several scores or persons are drowned
at sea or killed, nine or ten being electrocuted by live wires, and some thousands are rendered homeless. Crop
damage in nearby provinces is considerable, and the towns of Infanta and Polillo are practically wiped.

Nov. 12 . — The American members of the Joint Preparatory Committee leave Manila for the United States after
spending some three months in the country investigating conditions in connection with the proposal to readjust
Philippine-American trade relations. President Quezon, in a press release, expresses appreciation for the work done
by the Committee and states that he is “under the impression that it has done what is humanly possible for it to do to
get at the facts upon which its recommendations may be based”. The Filipino members of the Committee are
expected to leave for Washington after the Christmas holidays.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1937). News Summary. Philippine Magazine, 34 (12), 527-529.

News Summary, Philippine Magazine: November 11 - December 11, 1937

News Summary
The Philippines

Nov. 11 . — The towns of Polillo and Infanta, Tayabas, are reported practically destroyed by the last typhoon, and
heavy damage has been done to crops.

Nov. 12 . — The cedula tax abolition bill, as recommended by President Manuel L. Quezon, is passed in third reading
by the National Assembly.

Nov. 13. — Vice-President Sergio Osmena issues a statement in connection with the coming second anniversary
celebration of the Commonwealth of the Philippines, stating that though long strides have been taken under the wise
leadership of President Quezon, much remains to be done, and emphasizing that “the circumstances in the Far East
today hold grave warning to our people if they should falter or for any reason fail to accomplish successfully their
task of national preparation. They should be thankful that time has been given them to put their house in order while
the American flag flies over their country in benevolent protection; at the same time they should take heed of the
surrounding realities and understand the terrible dilemma that contemporary events present to all nations aspiring to
be free.”

Nov. 14 . — Sir Hugh Knatchbull-Hugessen, British Ambassador to China, passes through Manila on his way from the
Netherland Indies to Hongkong.

Nov. 15 . — President Quezon after a review of the Philippine Army on the Luneta in celebration of the second
anniversary of the Commonwealth, turns to U. S. High Commissioner, Paul V. McNutt, and states that in an age
when defenseless and powerless nations are in constant dread of their very existence lest some powerful nation may
attempt to subjugate them, America’s voluntary withdrawal from a country already under its lawful domain, so rich
in natural resources and so promising in material returns, stands as the beacon light pointing the way to a distressed
humanity out of the threatening disaster which that great advocate of national rights, Woodrow Wilson,
appropriately called self-determination. Here is the admirable example of two peoples thrown together by the hand
of Destiny and agreeing between themselves in good will and with the best wishes for one another to sever their
political union, so that each may go its own way as God has willed that every people should. In behalf of my
government and my people. Sir, may I ask your Excellency to inform the President of the United States that on this
day of our national rejoicing our first thoughts are of America and our grateful hearts to go out to her in
thanksgiving for her unfailing help, support, and encouragement in our difficult task of nation-building. And may I
also add, that you. Sir, as the President’s representative in the Philippines, have deservedly won our high esteem and
respect for the generous contribution you are making to this common enterprise which confronts us both, as well
your country as mine. You must have been thrilled to see our army parading before us this morning. I want to call
your attention to the fact that what you saw is not an army organized solely to defend the Filipino flag. While we are
under American sovereignty, that army is also the army of the United States because at any time the President of the
United States, by virtue of the Independence Act, may place it under the command of Gen. Lucius R. Holbrook
(General Holbrook is present at the review), the commanding general of the U. S. Army in the Philippines. I want to
assure the United States that our army is ready to defend the American flag not only because it is its duty to do so,
but because we recognize the great debt we owe America and we are ready at all times to give the world evidence of
our loyalty and gratitude to America and the American people”. The rest of his address is in Tagalog and
explanatory of his general policies. He touches also on the abolition of the cedula tax, the bill providing which he
signs on his return to Malacanan.

Nov. 16 . — A Supreme Court decision penned by Justice Jose P. Laurel in the Cu Unjieng case holds the Probation
Law unconstitutional and prohibits Judge Jose O. Vera of the Court of First Instance from proceeding further with
the application of the defendant for probation and censures him from finding the defendant innocent after his guilt
was established by the Supreme Court. In one place the decision states that comment by the Chief Executive on a
case pending before the court is a matter of propriety for himself exclusively to determine.

Nov. 17 . — President Quezon sends a message to the Assembly advocating the elimination of all restrictions as to
salaries in the University of the Philippines so that the services of professors from abroad may be obtained and the
giving to the Board of Regents full freedom to use the funds voted for the University as in its judgment would best
achieve the ends for which the University was founded. He states he is not interested in seeing thousands upon
thousands of young people graduated from the institution and would rather see a few graduated each year who
would leave the institution “with the character and knowledge that will fit them, through their own efforts, to
become leaders in their respective callings”. “Unless the University can justify its existence by actually rendering a
service to the country which private universities can not render at present, I would favor its abolition”.

Asked in a press conference as to the rumors that a dominion form of government is being considered for the
Philippines, President Quezon states he does not know, but that “if there is any reason why we should not be
independent in 1946, then we had better start talking about something else. If there are any for a dominion status,
then let some one bring it out”. He reiterates his stand on the exclusive right of the chief executive to initiate
appropriation legislation under the Constitution, though the Assembly has the "final say” in approving or
disapproving the executive’s recommendations. One of the purposes of the budget system, he states, is to do away
with the “pork barrel”.

He states, however, that it would serve no useful purpose to bring this issue up now, as this would only create a
serious impasse. He states the Assembly it not a “rubber stamp”, but that it is to be expected that the executive and
the legislature will work together in carrying out party platform pledges. He declares that there must be leadership
and that the Constitution places this in the executive. This is not incompatible with the separation of powers he
states. He denies that a rift exists between the American and Filipino members of the Joint Preparatory Committee,
but admits that on one occasion a misunderstanding developed on the matter of the export taxes provided for in the
Tydings-McDuffie Act, which the Filipinos opposed as a unit, each side coming to believe that the other constituted
a bloc. President Quezon states that he has maintained a hands-off attitude and that he has no official information,
but that he is under the impression that a change might be recommended in these taxes if their operation would
operate actually to kill an Islands industry. He states that Ambassador John Van A. MacMurray told him on leaving:
“We have made progress and I am hopeful we will be able to submit a report signed by all the members.”

President Quezon pardons the 61 -year old bandit, Nicolas Encallado, who surrendered to the authorities in January,
1936, and who was serving a life sentence.

Nov. 18 . — Another typhoon hits the Philippines, doing much damage in the Visayas.

Nov. 19 . — In compliance with the urging of members of the Assembly, President Quezon sends a special message
expressing his agreement to an increase in the budget and restoring the salaries of the entire government personnel
to the 1932 level. He also creates a committee to study the establishment of a foreign trade zone in Manila where
goods might be stored for transhipment without paying duty; headed by Jose Paez.

Reported that the resignation of Maj. Gen. Jose de los Reyes has been accepted to take effect at the end of the year
and that major changes will be made in the general staff.

Nov. 20 . — Braving threats of excommunication. Father M. P. Castillo, until recently parish priest of the Quiapo
Catholic church, Manila, sues the Archbishop of Manila for the reimbursement of P99.320.65, allegedly advanced
by him for the reconstruction of the church after the fire in 1929.

Nov. 21 . — The Assembly adjourns sine die at 2:40 a.m. after 25 days of session in order to give the members time to
campaign for their candidates in the December provincial and municipal elections. The Assembly will meet again in
January. A total of 21 bills were passed, including the general appropriations bill of P76, 900,000 nearly P12, 000,000
more than the appropriations for 1937; not including an additional P5,000,000 for school buildings, P5,000,000 to
local governments to offset the losses in revenue due to the abolition of the cedula tax, and PI, 000,000 aid to the
city of Manila.

Nov. 22 . — President Quezon makes a blanket renewal of all appointments not acted upon by the Assembly for lack
of time.

Commenting on the raising of the dominion government issue. Speaker Gil Montilla states, “I am always an
independista”. Assemblyman Pedro Sabido states, “Quezon’s official petition for independence still stands, and we
mean to back it up.”

The Congress of Peace and Friendship, a new association under the chairmanship of Pedro Abad Santos, adopts a
resolution condemning Japanese aggression in China and another one denouncing fascism as a menace to world
peace, and still another condemning compulsory military training under the National Defense Act.

Nov. 23 . — President Quezon is rushed to the Philippine General Hospital suffering from acute appendicitis and is
operated on by Drs. Antonio Vasquez, Antonio Sison, Miguel Canizares, and Januario Estrada.

Nov. 24 . — A bulletin reports that President Quezon’s “general condition is fairly good”.

Pablo Manlapit, labor leader and spokesman of the National Civic Union, states that “practical and intelligent
patriotism demands that the Filipino People take a more realistic attitude on the Philippine question as a result of
recent developments, particularly the current invasion of China by Japan”. He states his group will come out with a
proposal to continue political partnership with the United States in response to Quezon’s invitation to the people “to
speak courageously and honestly on the question of independence”.

Nov. 25 . — President Quezon’s condition is designated as “good under the circumstances”.

Nov. 26 . — Assemblyman Tomes Oppus states that the dominion plan is a “good idea” but that he doubts that the
United States will entertain it.

Manlapit states that his Civic Union is organizing a public campaign to secure public support for the dominion idea.
He states it would give the Philippines a “near sovereign status” with the advantage of continued American
protection and better conditions for labor. “I challenge any one to prove that Japan is no menace to Philippine
integrity. The so-called intelligentsia, the politicians, and the rich always can get out of the country before the
shooting, but the masses would have to suffer all of it”.

Nov. 27 . — President Quezon is reported “out of danger”. It is revealed that gangrene had already set in at the time of
the operation and that the surgical treatment was just in time.

The Philippine Army holds its first maneuvers in the hills of Antipolo, 1,500 men and 100 officers being engaged
for two days.

Nov. 28 . — Reported that Moro outlaws entrenched in a cota at Taraka, Lanao, have beaten off Philippine Army
troops after a two day encounter during which one a soldier was killed and 9 wounded. It is said that the cota being
situated on a promontory and the terrain being otherwise difficult. Stokes mortars and mountain guns are ineffective.

Nov. 29 . — President Quezon reported to be recovering and to have been able to sign the P500.000 typhoon relief
bill.

Philippine Army troops capture the Taraka cota, but the Moro defenders escape through underground tunnels.

Assemblyman Jose Angara of Tayabas, a nephew of Mrs. Quezon, dies of tuberculosis, aged 39.

Nov. 30. — T. Y. Soong, brother-in-law of General Chang Kai-shek and noted financier, is reported to have been a
Manila visitor last Saturday, arriving from Shanghai on a British freighter and sailing for Hongkong on the S. S.
President Taft the same day.

Dec. 1. — Major-Gen. Paulino Santos, Chief of Staff, Col. Fidel Segundo, Chief of Intelligence, Lieut. William Lee,
U. S. Army. Chief of the Philippine Army Air Service, and other officers leave Manila for Lanao in a Stimson
transport plane and a number of bombers.

Dec. 2. — Resident Commissioner Quintin Paredes states in art address to University of Santo Tomas students than
he doubts that readjustments of the objectionable economic provisions in the Tydings-McDuffie Act will be effected
during the present session of Congress and that the Filipino group on the Joint Preparatory Committee, of which he
is a member, has done nothing toward coming to any definite conclusions. He also supports the early independence
proposal of President Quezon with a trade treaty as the best solution to the situation.

Dec. 4 . — Paredes is quoted in the press as expressing surprise at the lack of applause when he advocated earlier
independence in his Santo Tomas speech, though he was otherwise well applauded, “It was a novel experience”, he
declares.

Dec. 5 . — A U. S. Navy amphibian plane from the U. S. S. Heron crashes into the mountain side in taking off at
Baguio, and the occupants, two officers and a mechanic are injured and the plane wrecked.

Dec. 6 . — President Quezon is reported able to sit up in bed.

Former Senator Juan Sumulong proposes reorganization of the Popular Front after the elections, whether it wins or
loses, as it is at present but a conglomeration of semi -independent blocs, and suggests the name Pagkakaisa ng
Bay an. Union of the People.

The Manila Municipal Board approves an appropriation for the erection of a commemorative tablet at the
intersection of Taft Avenue and Padre Burgos Street, in honor of Father Jose Burgos, Filipino martyr, whose
birthday anniversary will be celebrated on December 29.

Dec. 7. — President Quezon signs a proclamation declaring a state of public calamity to exist in Samar, Cebu, Iloilo,
and Bulacan as a result of the recent typhoons.

Anxiety is felt for the safety of General Santos and his party which, returning from Lanao, left Cebu yesterday
morning and have not been heard from since, it being concluded they were forced down because of the bad weather.

Dec. 8 . — President Quezon signs the P5, 050,000 school appropriation bill.

U. S. Army planes join in the search for the Santos party. Lieut. Oscar Sales, in one of the Philippine Army
bombers, made a forced landing on a school yard at Infanta, Tayabas, and reports that he lost sight of his two
companion planes some 20 miles north of Infanta at about 12:20. Later it is reported that Lieut. Jose Francisco and
his passenger. Major Manuel G. Olympia, flight surgeon, made a forced landing at the mouth of the Lubuyat river,
17 miles south of Atlanta, and that he lost sight of the Santos plane, piloted by Lieut. Lee at 1 1:3S south of Jomalig
Island, easternmost of the Polillo group. The Weather Bureau sent out the regular typhoon signals and warned the
Army that flying conditions between Cebu and Manila were bad. The planes carried only some three on four hours’
supply of gasoline. The country over which they flew is rough and impassible, heavily wooded, and with a
rockbound coast without beach. The searching planes are handicapped by bad weather and poor visibility.

Dec. 9 . — Over a score of U. S. Army planes are engaged in the search for General Santos and his party, but are still
hampered by bad weather, A thousand soldiers and civilian are combing the Sierra Madre wilderness.

The Philippine Army captures the Masiu and Gomagadong cotas after a long fight in which one soldier is killed and
a number wounded.

President Quezon signs the bill appropriating P5, 000,000 from the general fund to reimburse local governments for
the loss of revenue resulting from the abolishment of the cedula tax and also the PI, 000,000 annual Manila subsidy
bill.

Dec. 10. — Lieut. Alfred R. Maxwell, U.S.A., locates the Santos party on Anirong island, Polillo group, and the men
are picked up and brought to Manila by a U. S. Army amphibian plane piloted by Capt. S. E. Pmdhomme. General
Santos states that the weather was clear when they left Cebu and that he received no special warning as to the
typhoon raging north between Cebu and Manila. Lieut. Lee landed the plane on a strip of beach only some 25 meters
long without other damage than a broken propellor. The small island was inhabited by only two old people who had
never heard of President Quezon or of the Commonwealth.

President Quezon signs a bill eliminating the sales tax on sales made by small market dealers, and also license and
other taxes on small household industries. He also approves a bill providing for the holding of Assembly sessions
beginning the fourth Monday of January each year instead of October 16 as heretofore.

Dec. 1 1 . — The S. S. President Hoover is reported aground and in need of help about 100 miles south of Formosa, off
her usual route because of war conditions.

The United States

Nov. 14 . — The United States signs a trade treaty with Siam.

Military and naval authorities in Washington are reported to foresee that the situation in the Far East may lead the
United States and Britain to establish impregnable bases for their navies and air fleets in the Orient as a part of their
defense program and may force the United States to increase its weapons of defense in the Philippines — "this vital
spot” where America and Britain both have a powerful bulwark against Japanese expansion to the south.

“This would require considerable improvement of the Cavite and Olongapo naval bases and probably would be
followed by a large-scale construction program in Guam”.

Nov. 16 . — In an address to Congress which opened in special session yesterday. President Franklin D. Roosevelt
confines himself to domestic problems. Sen. Bennett Camp Clark advocates the immediate invocation of the
Neutrality Act and accuses British and French diplomats of trying to maneuver the United States into shouldering
the responsibility for anti-Japanese action. He states that sanctions against Japan would accomplish nothing while
Germany and Italy are cooperating with Japan, and he points out that United States trade with Japan exceeds that
with China and South America combined.

Nov. 17 . — Senator Clark introduces a resolution for an amendment to the Constitution requiring the calling of a
plebiscite before a declaration of war can be made and conscription for foreign service started. Rep. H. Sauthoff
presents a resolution demanding that President Roosevelt declare a state of war to exist in the Far East and invoke
the Neutrality Act.

Girls in the University of Washington vote to boycott Japanese silk and men vote “no dates” for girls who wear silk
stockings.

Nov. 18 . — An “official spokesman” in Washington tells the United Press that “Philippine American relations must
continue to be guided by the Tydings-McDuffie Act except in case of further congressional action in the matter. . .
Officially there has been no change in the attitude of the United States government regarding relations with the
Philippines. No proposal for a dominion status for the Philippines has been put forward officially and hence does not
officially exist”. Meanwhile, according to the news service, the proximity of the Philippines to the scene of the Far
Eastern war is creating a growing sentiment in Congress toward granting independence as soon as possible. “It is
generally believed that a final analysis of the Philippine national defense problem would determine the ultimate
policy of the United States regarding independence. . . The suggestion of a dominion status for the Islands is

interpreted in some quarters as an indication that the Joint Preparatory Committee on Philippine Affairs has failed to
agree on the possible terms of preferential economic and commercial relationships in case of the grant of
independence in 1938 or ’39.” According to the Associated Press, “it was said” in Washington that a dominion
status such as that of Canada, would retain for the Islands the trade benefits which independence might terminate.

Nov. 19. — Sen. E. W. Gibson states that a dominion status for the Philippines would be far preferable to
independence in view of the Far Eastern situation Sen. K. McKellar states that independence would be bad both for
the United States and the Philippines. Most persons approached, however, are said to be evasive in their replies and
other important congressional figures withhold comment.

The United States, Britain and Canada are reported to be preparing mutual trade treaties, which is interpreted as a
“master stroke” of Secretary of State Cordell Hull, with two great democracies and a dominion serving notice that
they intend to strengthen their political and economic ties” as “a rebuff to the Italo -German alliance.” This would
constitute the most powerful commercial and monetary bloc in history.

W. C. Bullitt, American Ambassador to France, terminates a short visit to Warsaw, and while he states that his visit
was social and private, “high reliable” Paris sources state the purpose of the trip was to suggest to Poland that it
refrain from subscribing to the Italo-German-Japanese “anti-communist pact”. Sen. Hamilton Lewis states in
Washington that “it is inconceivable that the Ambassador could have blundered into such action” and declares an
effort should be made to find out the facts.

Nov. 20 . — The Baltimore Sun expresses doubts that the United States would suggest the establishment of a
dominion government for the Philippines in view of the enactment of the Tydings -McDuffie Act and that President
Manuel L. Quezon would probably have to personally request such an arrangement if it is desired.

Nov. 21 . — The New York Daily News states there is but one answer to the unofficial proposals for a dominion status
for the Philippines — ’’Nothing doing!” “The Filipinos or their leaders hate us when things are quiet in the Far East
and warm up to us in heavy weather; they ought to be made to take what they asked for. . .”

Nov. 22 . — Senators G. P. Nye, A. H. Vandenberg, and B. C. Clark join forces in an attempt to force President
Roosevelt to invoke the Neutrality Act Nye stating that "the Brussels Conference has given us nothing but
embarrassments. It is time Americans learn that nothing constructive ever comes out of such conferences”. Sen. H.
C. Lodge states he may introduce amendments to the Act repealing the “cash and carry” provisions. Rep. L. Ludlow
asks the House to consider a joint resolution calling for a popular referendum before war can be declared.

(For a summary of the news in connection with the Brussels Conference, see this column under the heading, “Other
Countries”.)

Nov. 23 . — While Rep. H. Fish of New York charges that President Roosevelt is responsible for the loss of
$30,000,000,000 in security values on the stock exchanges during that past two months because he is destroying
business confidence and causing fear and uncertainty, others charge the falling market is the work of a Wall Street
conspiracy. The Chairman of the Federal Securities Commission declares that “adequate safeguards” must be
thrown around the New York and other exchanges either by themselves or by the Commission, the statement leading
to interpretations that the President is preparing to “crack down” on Wall Street.

The Scripps-Howard papers state that it is rumored the Joint Preparatory Committee on Philippine Affairs may
propose dominion status, but that the success of such a move is doubted in congressional circles as it is believed a
radical change in the Tydings-McDuffie Act “might invite tragedy” because if the United States initiates such a
change, every ambitious Filipino politician would immediately come out with the slogan, “We want independence!”
“If the Philippines really wants a dominion status, it will have to ask for it first. . . but it will have to speak soon and
mighty loudly; otherwise there is not a chance.”

Nov. 24 . — Henry Ford, automobile manufacturer, states that the business depression is “temporary and artificial”,
due in part to the uncertainty of business regarding political interference (but Congress is taking care of that), and in
part to stock market fluctuations.

Nov. 25 . — Several public utility corporations announce large-scale construction programs following conversations
between President Roosevelt and leaders of the power industry, said to be back of more than $2,000,000,000 in new
enterprises which they hesitated to launch because of the possibility of government competition. The President’s
move for a truce between his administration and the utility concerns, however, arouses a hostile reaction in
Congress, Rep. J. E. Rankin stating that “What the power trust wants is to destroy the Tennessee Valley Authority
yardstick, thereby wrecking the Administration’s power program”. Wall Street discusses the possibility that the
utility companies may halt and perhaps reverse the current stock market slump by means of such a concerted
construction program. The Chrysler Corporation lays off 10,000 of its 55,000 employees because of the business
slump.

Germany formally offers a lump sum payment of $1 12,138,000 to cover defaulted municipal bond payments due to
American investors in an effort to establish better relations.

Nov. 26 . — The Securities and Exchange Commission is reported to have given the stock exchanges the choice
between progressive action of their own to eliminate abuses during the next six months and strict federal control.

Nov. 27 . — American Federation of Labor officials state that the current business decline may assume dangerous
proportions if industry fails to maintain buying power close to present levels.

Nov. 28 . — Secretary of War Harry H. Woodring in his annual report recommends the strengthening of the armed
forces and the maintenance of the air force on a practically war-time basis. Navy Department officials are reported
to be working on a huge defense program for Hawaii, including increases in Army and Navy airplanes, added coast
defenses, and improved harbor facilities.

Nov. 29 . — President Roosevelt sends a special message to Congress calling for a revision of housing legislation in
order to stimulate construction. He also advocates a slash in the appropriations for highway construction to help
balance the budget.

Nov. 30 . — Western legislators criticize Roosevelt’s plan for a housing boom and his request for a slash in the high
way grants which they interpret as a threat to their patronage.

The New York Times attacks the government’s strict neutrality policy and blames the pressure of isolationists and
pacifists. “Treaty breakers are convinced that for no cause except actual invasion will the United States initiate or
join in any effective movement to assure world peace”.

Dec. 3 . — The conferences between William Green of the American Federation of Labor and John L. Lewis of the
Committee for Industrial Organization end in failure, the issue of dual unionism remaining an unsurmountable
obstacle.

Former Senator Harry B. Hawes, returning from the Philippines, states in San Francisco that the Philippines is better
off than any other nation today and that he does not believe the Filipinos want immediate independence. “There has
been no formal request to this effect and no gesture from the people as a whole”.

Dec. 5 . — Secretary of Commerce Daniel C. Roper tells Congress that the national income for the fiscal year ending
June 30 was $68,700,000,000 or $9,000,000,000 more than during the previous twelve-month, though still 20%
below the 1928-29 figures. He recommends the approval of the metric system as the official standard of weights and

measures.

Col. and Mrs. Charles A. Lindbergh arrive in the United States incognito and are understood to be guests at the
home of Mrs. Dwight Morrow, mother of Mrs. Lindbergh. Their two children remain in England.

Dec. 6. — Under-Secretary of State Sumner Wells in an address at George Washington University declares, without
mentioning the Monroe Doctrine, that “if non-American powers attempt to exert through force, political or material
influence in the American continent, appropriate action would undoubtedly at once be determined upon". Radio and
other propaganda in Latin America from fascist countries is known to have caused official uneasiness in
Washington.

Dec. 8. — Sen. J. Hamilton Lewis of Illinois points out that similar anti-Administration speeches made in New York,
San Francisco, and other cities on the same night, reveal a “conspiracy of speculators and tricksters” seeking to
create a business panic.

Dec. 9 . — The United Press quotes an “influential member” of the Joint Committee on Philippine Affairs as stating
that if the Filipino members of the Committee will recommend immediate independence, “it is conceivable that the
majority of the American members would make a similar recommendation”. One of the major differences of opinion
is not the question of independence itself, it is stated, but the economic measures necessary to prepare the country
for independence. “These are extremely difficult though not necessarily insurmountable difficulties”.

Fourteen U. S. Navy bombing planes complete a non-stop flight of 21 hours and 55 minutes from San Diego to the
Canal Zone, the most ambitious mass flight yet undertaken by the Navy.

Other Countries

Nov. 11 . — The Brazilian Cabinet resigns, leaving President Getulio Vargas in control of the administrative and
legislative branches of the government as the senate and chamber of deputies have previously been dissolved, and
all state and municipal councils as well. A new constitution designed to create a corporate state is hailed in Rome as
“another fascist triumph”. Vargas’s domination of the country began in 1934 and claims that the danger of armed
revolution prompted his course. Payments on foreign debts have been suspended. The United States government is
reported to have decided to withdraw its loan of six destroyers.

Nov. 12 . — Japanese forces occupy Nantao as the Chinese abandon their positions there, bringing to a close Japan’s
three-months effort to take the Chinese section of Shanghai. The British Cabinet is reported to have decided to take
no official cognizance of the statement of General Iwane Matsui that he is virtual master of Shanghai and feels free
to take any steps dictated by military necessity not only in Chinese territory but in the International Settlement.
Reported from Washington that the United States would take decisive steps if Japan seeks control of the Settlement
or censors mails and cables. Japan rejects the second invitation of the Brussels Nine-Power Conference to discuss
peaceful settlement of the conflict, claiming its action in China is purely in self-defense and hence outside the scope
of the Nine-Power Pact. “It certainly is impossible for Japan to accept an invitation to a conference convened in
accordance with stipulations in the Treaty after Japan has been accused of having violated it”, says a spokesman. It
is indicated, however, that mediation would be welcome, but not from Brussels, and Japanese officials there intimate
that the United States, acting by itself might be acceptable as mediator.

Nov. 13 . — According to a Japanese newspaper in Shanghai, the Japanese authorities “will demand that the
authorities of the International Settlement and the French Concession control anti-Japanese agitators now taking
refuge there, otherwise the Japanese will probably take action as indicated in General Matsui’s statement”. The
Japanese begin using Soochow Creek, which runs through the Settlement, to transport supplies, and to avoid
friction. Settlement authorities recognize the Creek as an open waterway. Reported that British commanders in the
Settlement have been ordered to defend their positions against any attack.

Nov. 14 . — Japanese troops, supported by naval planes, take a number of points within a 50-mile radius of Shanghai.
Britain and France throw the fate of the Brussels Conference into the lap of the United States by agreeing to join in
any effort except war which it may desire to make, and it is predicted the Conference will fail unless America takes
the lead. Dr. Wellington Koo presents a memorandum designed to prove that economic sanctions against Japan

would suffice and proposes an embargo on all war materials, a boycott of Japanese exports and shipping, and a
refusal to extend credits to Japan, while extending assistance to China in the form of credits and war supplies, stating
"the door of conciliation and mediation has been slammed in your faces.” Japan is reported to fear this and to have
approached Britain with a proposal to guarantee the Open Door and non-interference with foreign interests in China.
Over-riding Italian protests, the Conference approves a declaration drafted by the United States, Britain, and France,
rejecting Japan’s arguments and reiterating the hope expressed earlier in the day by Norman Davis, the American
representative, that Japan will change its attitude. “If, however, this proves not to be the case, representatives must
consider what is their common attitude toward a situation where one party to an international treaty maintains views
which are against the view of all the other parties”. The declaration points out that there exists no warrant in law for
the use by any country of an armed force to combat in another country the spread of any political doctrine. Davis
stated earlier in the day that the conflict “raised the question of whether law or force shall rule the world. If the
conception of peace through violence should prevail, we should be faced by international anarchy. Had Japan
accepted the invitation, I am confident we could have been helpful to her as well as to China. . . . The only just and
durable solution would be settlement by voluntary, peaceful agreement.” The Italian delegate held that the matter is
“entirely outside the scope of this Conference”.

Nov. 15 . — Japanese planes bomb Soochow, Changshu, and the entire Chinese line “to create panic among the
Chinese troops falling back on these positions.”

Seven employees of a bacteriological laboratory in the Ukraine are reported to have been executed for making a
wrong life-stock diagnosis.

Nov. 16 . — The Chinese government decides to move its civil departments from Nanking to Hankow as the Japanese
are smashing westward and approaching Soochow. Reported from London that France has dispatched four warships
to the Far East in answer to a Japanese demand that the entry of arms and ammunition into China through French
Indo-China be stopped immediately on threat of the seizure of Hainan and the bombing of the railway between Indo-
China and China. French sources in Tokyo discredit the report of such a demand. Tokyo newspapers report
Manchukuoan efforts to raise 1,000,000,000 yen in Japan and the United States to develop heavy industries. A
Japanese spokesman at Brussels states that the declaration of the Conference in respect to Japan’s reply in which,
“Japan carefully opened the way to good offices” is regretable, for, “as a result, this way is now closed forever”.

King Leopold III of Belgium arrives in England for a series of conferences, accompanied by Foreign Minister Paul
Speak.

Lord Halifax, Lord President of the Council, leaves London for Germany to confer with Chancellor Adolf Hitler
concerning his colonial demands.

Arabian, and Jewish municipal councilors of Jerusalem issue an unprecedented appeal to check the terrorism in
Palestine which has cost scores of lives in past weeks.

Nov. 17 . — The Japan Foreign Office spokesman states that Japan has no intention of occupying the International
Settlement and that General Matsui’s statement was “greatly misreported”. The Japanese military in Shanghai state
that Chinese casualties in the fighting total over 300,000, of which 91,000 were left dead on the battlefield; 10,000
represent Chinese losses in the past 10 days. War booty taken by the Japanese in the Shanghai area includes 14,200
rifles, 480 heavy machine guns, 1,900 light machine guns, 10 field guns, 70 trench mortars, and 7 howitzers, it is
claimed. Meanwhile the Japanese are pressing on with reinforcements from Japan still pouring in and an estimated
250,000 Japanese troops in the Shanghai area. Japanese sources in Brussels state that Japan would regard as a hostile
act any decision of the Conference to accede to China’s appeal for material aid. One Japanese states that in the case
of Spain, the nations established a non-intervention committee, but "in the Orient everyone seems to think he has a
right to interfere”.

Sen. Henri Berenger of France charges in a public speech that the anti-communist triumvirate constitutes a military
alliance aimed at conquest and that it has chosen France as its first victim. The intention is, he declares, to establish
a German empire in central Europe, a Roman empire in the Mediterranean, and a yellow empire in eastern Asia and

the Pacific. Siam constitutes a salient against France in Indo-China and British India, he declares. His statement as to
Siam is challenged by a “British source” as contrary to fact, as there is no alliance, open or secret, between Japan
and Siam, and Siam only desires rigorous neutrality. It is also stated there is not the slightest chance of the
construction of a canal through the Kra peninsula. “Japan will not be able to rely on a single nation in the Orient.
One of the Federated Malay States’ recent gift to Britain £400,000 expansive for airplanes shows that these people
wish sufficient defense against the imperial ambitions of any nation.”

Nov. 18 . — The Japanese claim the capture of Hashing, southern key-stone of the Chinese line, although severe
fighting still rages in the region. Reported from Paris that on November 6 Germany asked Japan to terminate
hostilities in China, pointing out that Japan was weakening itself and lessening its potentialities “in other fields”.
The French Foreign Office and the Japanese Embassy in Paris both deny that Japan served an ultimatum upon
France in connection with the shipments of arms through Indo-China.

The French Ministry of Colonies issues a communique stating it is willing to study the project of opening credits
whereby Germany would exchange manufactured goods usable in the development of the French colonies in Africa
for raw materials which Germany lacks — a virtual invitation for Germany to share in the exploitation and an
unprecedented gesture.

Nov. 19 . — The Japanese capture Changshu, cutting it off from Soochow toward which they are now advancing.
They bomb the Kowloon-Canton railroad, just outside Honkong. Japan is reported to be disturbed about large
quantities of arms and munitions reaching the Chinese by way of Hongkong. “Responsible quarters” in Brussels
state that the Conference powers have been unable to arrive at any definite course of action against Japan because of
the unwillingness of the United States to cooperate, Washington being unable to authorize anything more than moral
condemnation because President Roosevelt has realized the American public will not support economic sanctions or
anything of that sort. British Foreign Secretary Anthony Eden and French Foreign Minister Ivon Delbos will not be
present at next Monday’s meeting. Delbos tells the Chamber of Deputies that “conciliation has collapsed; in several
days a new step must be taken at Geneva”. Later he declares that his mention of Geneva was a slip of the tongue and
that he should have said Brussels. Eden states that his reason for not returning to the Conference is that he has
caught a bad cold. Davis has also been confined to bed for several days with a severe cold.

King Leopold ends his four day visit to England.

Spain begins the 17th month of the fascist rebellion with 800,000 troops locked in combat in Aragon. Deaths are
estimated at 350,000 and total casualties at 1,500,000. The Loyalists are now massed in northeastern Spain, hemmed
in by land and partly blockaded by sea. The Government is said to have more than 430,000 troops and the rebels
350,000, but the latter are better equipped. Russia is reported to have informed the Loyalists of its desire to
terminate participation in the Spanish civil war because of its growing preoccupation in the Orient.

Nov. 20 . — Japanese report the taking of Soochow, gateway to Nanking without firing a single shot. The Chinese line
is now broken at its north and south ends and in the center. Senator K. Pittman states that the contention that the
United States is responsible for the failure at Brussels is absurd. “No one has proposed any affirmative action at
Brussels.”

Announced at Moscow that 5 Italian consulates in Russia will be closed shortly. A number of Japanese and German
consulates in Russia have recently been closed at the request of the government.

French police uncover more and more evidence of a planned rightist revolt, and many of the leaders are fleeing the
country. Some 200 clandestine radio stations have been discovered and seized. Government officials remark that the
fascist elements seem to have had singular support along the French frontiers.

Premier Benito Mussolini himself takes over the portfolio of the African Ministry and Duke Aosta, cousin of the
King, is named Viceroy of Ethiopia. There have recently been many reports of continued trouble in the country.

Viscount Cecil, President of the League of Nations Union of England, is awarded the Nobel Peace Prize for 1937.

Nov. 21 . — Japan through its representatives in Shanghai serves strong notice on the authorities of the International
Settlement and of the French Concession that the army will take action in case of non-compliance with the demand
of Japanese control over Chinese maritime customs, the postal and telegraph administration, the courts and other
agencies. The American delegation at the Brussels Conference rejects a British proposal that the two powers make a
joint effort to halt the Sino-Japanese conflict by tendering their good offices for the purpose of arranging an
armistice, one of several “face-saving” devices that have been put forward, the rejection being made on the grounds
that this would simply be inviting another Japanese rebuff.

Nov. 22 . — The Japanese drop a personal message from the Japanese military and naval authorities for Generalissimo
Chiang Kai-shek from a plane at Nanking asking him to surrender, although the full contents are not revealed. The
United States and Britain present a draft to the Brussels Conference of a declaration containing a new appeal to
China and Japan to cease fighting, and the advisability of suspending the Conference and reconvening “when the
deliberations can be resumed advantageously” is discussed. Dr. Koo launches a scorching attack, urging the powers
to “cease reaffirming pious principles and take concrete action”. Reported that the American delegation has received
instructions to finish the work and catch the liner President Harding , which leaves Le Havre Wednesday, for home.

The Due de Guise, also known as the Duke of Paris, and pretender to the throne, issues a manifesto stating he has
decided “to reconquer the throne of my fathers”. The statement indicated the plans a pacific conquest of the nation.
Paris newspapers accuse Germany and Italy of being behind the movement to overthrow the French Republic.

Nov. 23 . — Foreign embassies, including the American, leave Nanking for Hankow, the new seat of the Chinese
government. Sir Frederick Maze, Inspector General of Customs, appoints a Japanese Administrative Commissioner
of Customs in Shanghai and another Japanese accountant there, giving the Japanese control of the customs service
of China’s greatest port. It is indicated in both Washington and London that America and Britain might take stern
action if Japan insists on taking over administrative control of the International Settlement. A high British authority
states that Britain would prefer joint action with the United States, but is prepared if necessary to take vigorous
action to protect its own rights. Washington State Department officials indicate readiness to collaborate closely with
other nations concerned in the event Japan attempts to control forcibly the International Settlement. Japanese reports
come from various sections of North China speak of a “burning desire” spreading in the region for the establishment
of a federation of autonomous local governments, including all territory north of the Yellow River.

Sir Jagadish Candra Bose, famous Indian scientist and botanist, dies, aged 78.

Nov. 24 . — Japanese claim the capture of Wushing, south of Taihu Lake. Several hundred civilians are killed in air
raids of Canton and Honam Island across the river. Nanking is also again bombed, the first time since September 8.
The personal message to Chiang Kai-shek is delivered, but a Chinese spokesman states: “There is no answer; none is
necessary”. All the delegations to the Brussels Conference, except Italy, agree in principle to a report which reviews
the history of the Sino-Japanese hostilities, urges their suspension, and declares that time is required to exchange
views and explore methods and that the Conference therefore decides to suspend its sittings for an indefinite period.
The report does not directly criticize Japan but reaffirms the principles of the Nine-Power Treaty and recommends
settlement of the dispute in conformity with its provisions. Dr. Koo approves the report “in a spirit of solidarity” but
urges the powers to exchange views as to further prompt and active measures. Italy based its objections on the
report’s “hostile reasoning”. Davis states that the suspension does not signify that the problem has been dropped or
that “our interest in its solution has been lessened; on the contrary, it makes it more important to continue earnestly
and actively every possible peaceful means of bringing about a cessation of hostilities and a constructive
settlement”. Reported that Britain has invited Davis to London to continue discussions. Eden tells the House of
Commons that it would be “quite proper” for members of the League of Nations to supply arms and ammunitions to
China under the resolution adopted by the League Assembly on October 6. Asked if the government would give
support to the Shanghai Municipal Council in any resistance it may make to the Japanese demands, he replies, “Yes,
that has already been done”.

Britain signs a new treaty of friendship with Siam to replace the treaty which recently expired. About 85% of Siam’s
sea-borne trade is with the British Empire and the country’s integrity is guaranteed by Britain and France under an
agreement dated 1904.

Reported that Germany has outlined a program to Lord Halifax providing for Germany’s return to the League
provided Europe will meet its demand for African colonies; also that France and Britain will not interfere in Austria
regardless of the nature of Austro-German relations so long as Germany guarantees they will be peaceful, and a
similar attitude as regards Czechoslovakia, where, as in Austria, Nazi influence is increasing; resurrection of
Mussolini’s plan of establishing a four-power European directorate in which Germany, Italy, France, and Britain
would consult on all international questions; Anglo-American cooperation to avoid attacks on Germany through
economic restrictions. Hitler is understood to have informed Halifax that he has no interest in Spain beyond
preventing the westward encroachment of communism. It is said that Britain is embarrassed by the demands, but
strict official secrecy prevails.

Nov. 25 . — The Japanese capture Wusih, bringing Japan’s forces to a point about halfway from Shanghai to Nanking.
Shanghai is faced with a serious food-shortage because of the Japanese blockade and the destroyed railways.

A London press dispatch states that Britain is ready to grant Hitler’s demands, provided Germany will agree to arms
limitation and limit bombing planes in size and number.

Reported from Burgos that Britain has offered to mediate between the loyalists and the rebels provided the Bourbon
monarchy is restored. Loyalist Generalissimo Jose Miaja at Madrid states that he “will not agree to an armistice and
come to terms with those who betrayed Spain and permitted a foreign invasion of our soil”.

Nov. 26 . — General Matsui states that Japanese troops will continue their advance to Hankow and even Chungking
unless China ceases resistance. “China must abandon its policy of depending upon European and American
countries, and European and American countries must understand that their support of Chinese policy never has
contributed to security and peace in the Orient”. Reported from Washington that the United States has rejected the
proposal for joint British- American action against the Japanese demand for control of the International Settlement,
but that both powers will make separate and parallel representations which will refuse the majority of the Japanese
requests for power over the Settlement, claiming that the situation there remains unchanged by Japan’s conquest of
the surrounding area. If these parallel representations are unsuccessful, Britain will again suggest joint action, it is
said. Davis is instructed to decline the invitation to come to London.

As French police unearth increasing evidence of a wide-spread fascist revolutionary plot, the Chamber of Deputies
gives Premier Camille Chautemps a vote of confidence. It is revealed that secret revolutionary militiamen, the
Cagoulards, distributed thousands of mobilization cards, instruction adherents what to do when the revolt began.

Italian newspapers acting in full concert are full of the bitterest anti-French invective and demand the resignation of
the French Minister of Marine for an alleged anti-Italian speech to French sailors at Toulon on October 23 in which
he stated France “would have Italy s hide”. The Minister states his speech was made on the 22nd, was fully reported
in the press at that time, and contained nothing of an international character.

Hitler formally accepts Hjalmar Schacht’s resignation as Minister of National Economy, but retains him as minister
without portfolio and President of the Reichsbank. Schacht has for some time been trying to resign because of
disagreement with Air Minister Hermann Goering over the management of the Four- Year Plan.

Nov. 27 . — Premier Prince Fuminaro Konoye states to Japanese newspaper men “If the independent regime in North
China gains strength and controls more than half of China, similar to General Francisco Franco in Spain, it will be
advisable for Japan to consider it the central government of China. . . As the Nine-Power Treaty was the pretext for
the powers to interfere in Far Eastern affairs, Japan will propose either revision or denunciation at the first
opportunity. As was made clear several years ago, Japan does not admit European or American intervention in the
Far East. We should have resorted to this long ago.” The British Ambassador to Tokyo is reportedly instructed to
impress on Japan that Britain insists on being consulted on any arrangements Japan may desire to make regarding
the Chinese maritime customs, and the United States and France are said to be acting along similar lines as all three
nations are interested in loans to China secured by customs revenue. The murder by men wearing the Japanese and
Manchukuoan uniforms of eight European Catholic missionaries and a layman at Chenting on October 9, is

confirmed. They were taken in a truck to a place where Japanese dead were being cremated and were bayonetted
and their bodies burned.

Nov. 28 . — According to an International News Service dispatch from Brussels, an entente among the English-
speaking nations — the United States, Britain, Canada, Australia, and New Zealand — for cooperation in the Pacific
“was sought behind the scenes” of the Conference, with the British “openly and frankly eager for such cooperation,
the “idea not being unappealing to President Roosevelt”.

Nov. 29 . — The Japanese occupy Wutsin and predict the early fall of Kiangyin Fort on the Yangtze. All Chinese
domestic radio and telegraph offices in Shanghai are paralyzed when Japanese efforts to induce Chinese telegraphers
and technicians to remain at their posts. Japan seized control, according to the Japanese spokesman, to preserve the
secrecy of Japanese military operations and to prevent the Chinese from carrying off or destroying the equipment.
Japanese also take over the cencensorship of Chinese newspapers, many of them hereupon suspending publication.
The Japanese have not molested American and foreign cable companies in the Settlement and French Concession.
The United States is reported to have made new and more vigorous representations to Japan against interference
with the Chinese customs. A Foreign Office spokesman declares: “We do not have to consult Britain and the United
States regarding our projected actions in Shanghai. Steps which must be considered wholly as matters of military
strategy will be taken. We insist we have a right to act independently in so far as their strategic phases are
concerned. We certainly will not be able to allow Chinese customs receipts to be used by the Chinese against Japan.
However, because of the composition of the International Settlement, we will maintain close contact with Settlement
authorities in every respect. Foreign rights and interests will be respected fully. We may repeat the method used in
Manchukuo, namely the setting aside of a certain portion of the customs for instalment payments on foreign loans.”
Mussolini announces the formal recognition of Manchukuo as an “independent state”.

Reported from Moscow that Russia angered at British overtures to Germany, its de facto recognition of Franco, and
the failure of the Nine-Power Conference, has decided to follow the example of the United States and play a lone
hand in world affairs. The Central Executive Committee compelled Foreign Commissar Maxim Fitvinov to make a
speech in Leningrad yesterday renouncing his policy of collective action.

Premier Chautemps and Foreign Minister Delbos arrive in London for important discussions.

The rebels bomb the small town of Colmenar, 30 kilometers north of Madrid, killing some hundred persons,
including many women and babies, and other towns in the vicinity of the capital. They also proclaim a blockade of
all government-held ports, including Minorca, but government officials state is it’s “paper blocade” as the rebels
lack sufficient ships.

Nov. 30 . — The Japanese Cabinet approves a budget of 2,868,299,000 yen, an increase of 54,362,000 over the budget
for the current fiscal year. It includes allotments of 400,000,000 yen each for the army and the navy. Further special
allocations may be made in January. Japanese troops take the Kiangyin Forts. Two Catholic priests reach Shanghai
and report to the French Ambassador the destruction of the Catholic orphanage at Kashing and the killing of 86
Chinese orphans and babies by Japanese airbombs and also the disappearance of four French and five Chinese nuns
with 150 refugees who fled into the interior aboard a large sampan and have not been heard from since. A Japanese
naval party seizes one American and two Italian tugs docked beside the French Concession, hauling down the
American flag and throwing it into the river. A sign on the bridge indicating American ownership was removed and
used to crack over the head of a Chinese crewman. The American Consul-General protests and reports the matter to
Washington. Washington is reported concerned about reports that the Japanese are reducing Chinese tariffs on
Japanese imports in violation of China’s tariff treaties with foreign powers. Japan announces that beginning
tomorrow it will recognize General Franco’s government in Spain.

The Anglo-French conversations in London are reported to be “highly successful”. Understood that the discussions
confirmed the Anglo-French agreement on non-intervention in Spain, the need for vigilance in Shanghai, the need
for further examination of the German colonial demands, and the necessity of bringing Mussolini to terms. They are
reported to be prepared to recognize in principle the German demands in exchange for a German guarantee to
subscribe to European security. They are said to favor an international “territorial pool” to which powers holding

League mandates would contribute “offers” for Germany’s exploitation. Other powers will be consulted. A Foreign
Office communique emphasizes the readiness of Britain and France to “cooperate with other powers similarly
placed in the protection of rights and interests in the Orient and to meet obligations arising from international
treaties”.

The Panchen Lama, spiritual head of Tibet, dies in India, following 13 years of exile because of differences with his
temporal colleague, the Dalai Lama. For some 12 years he lived mostly in China and Mongolia.

Dec. 1 . — Eden states in the House of Commons that Britain does not recognize the right of any power to act
unilaterally towards the solution of problems arising from the administration of the Shanghai International
Settlement and would not permit Japan to take over control. He states also that both Britain and the United States
expect to be fully consulted by Japan regarding any interference in the Shanghai customs administration. Japanese
naval authorities return the American tug seized yesterday and also the two Italian tugs and replace the flags, stating
that the American flag “accidentally fell into the river”. A Japanese officer apologized and requested a receipt from
the owners. An editorial attributed to Mussolini in the Popolo d’ Italia ridicules the Brussels Conference and advises
China to seek peace terms from Japan. The editorial warns the United States and Britain against taking action
“because Japan is invulnerable. . . Japan will make booty of everything sent to China.” The Japanese Consul-
General in Hongkong calls attention of the British colonial authorities to the number of Chinese leaders entering and
leaving Hongkong engaged in activities against Japan and warns that further tolerance might eventually involve
Hongkong in the Sino-Japanese dispute. France sends its crack Fourth Cruiser Division to the Orient on an
“endurance cruise” to Saigon.

Belgium having declared semi-officially that it will never agree to anything which will affect the integrity of its
colonial territory nor anything which will bring its sovereignty in the Congo in question, the German spokesman
points out that the suggestion is only for German economic rights in Belgian and Portuguese colonies.

Dec. 2. — According to a Reuter dispatch, Chiang Kai-shek is discussing with the German Ambassador a “German
offer for peace” which includes the following terms: (1) a definite assurance from Japan that it has no territorial
designs but merely desires economic cooperation, (2) China to participate in the anti-communist pact. (3) Japanese
troops to withdraw completely from Chinese territory. According to the Asahi Shimbun , the Japanese government
holds that the customs are a Chinese government organ and that the question of Japan taking it over should be
solved through direct Sino-Japanese negotiations, without third-party interference. The London Daily Express states
that “if Britain did get involved in that war, the smile would move from Japanese faces. . . . Hongkong is a very
different affair from the Shanghai International Settlement or even from mandated territory. Hongkong is in the
same category as Gibraltar, Malta, Cyprus, and Ceylon, and would be held with every man and gun the Empire
could muster”. The Japanese Consul in Hongkong denies that he made any threats and states he was misquoted.

The British government is reportedly sounding out Australia, South Africa, and New Zealand on the possibility of
their cooperating in meeting Germany’s demand for colonial expansion, stating, however, that the demands do not
affect the mandates in New Guinea and Samoa.

The British Colonal Office announces that beginning the first of the year the government will impose quotas on
imports into British Malaya from Japan, China, and Netherland India of all inner and outer garments made of cotton
and artificial silk Chinese workers in Japanese iron factories in Malaya strike.

Delbos leaves Paris for a tour of Warsaw, Bucharest, Belgrade, and Prague to seek to quiet the fears that France is
ready to abandon eastern Europe to Germany. It is believed he will also sound out leaders on the negotiation of a
nine-power peace pact broached dining the Anglo-French conversations which would include Germany and Italy,
Belgium, Poland, Rumania, Yugoslavia, and Czechoslovakia, besides France and Britain, but not Russia, which it is
said is being pushed by Britain but “hardly favored” by France because of the exclusion of its ally, Russia.

Dec. 3 . — Over 1000 civilians are reported to have been killed by Japanese incendiary bombs dropped on Siaochan,
opposite Hanchow A Japanese “victory parade” in Shanghai of 8000 troops, including infantry, cavalry, and artillery
units, held in spite of protests from the British and American commanders, ends in trouble when a Chinese throws a

hand-grenade, wounding a number of Japanese soldiers. The Chinese was immediately shot down by Chinese
constables. Another Chinese committed suicide by jumping from a high building as the parade passed. The Japanese
troops in the immediate vicinity of the explosion scatter, but after the parade, the Japanese return in force and erect
barb-wire entanglements through the district, covering some 30 square blocks including three blocks in the
American-defended area, preventing many persons from reaching their homes and hotels. Col. Charles F. B. Price,
U. S. Marines, protests and the Japanese withdraw, the contingent later withdrawing entirely and returning to areas
south of Soochow Creek. The strong stand of the American and some British officers is said to have prevented a
seizing of the Settlement with the grenade incident as pretext. The Washington State Department “manifests grave
concern over the narrow margin with which a serious conflict between Japanese troops and U. S. Marines was
averted” and the incident leads to renewed demands for the invocation of the Neutrality Act. Sen. Bennet Champ
Clark warns that “while American troops remain in China there is danger of embroiling the whole nation”.

The British War Office announces changes in the army high command involving the resignations of three of the four
military members of the Army Council and the appointment of younger men.

Belgium and Portugal are reported to have warned Britain they are opposed to any scheme of European appeasement
involving their sovereignty over colonial possessions. South Africa is also reported opposed to the acquisition by
Germany of even mandatory powers in Africa.

President Vargas of Brazil decrees the dissolution of all political parties.

Dec. 4 . — Japanese authorities demand right to enter any part of the International Settlement without previous
notification, and also demand that the Settlement police take steps to prevent the repetition of such an incident as
occurred during the military parade, reserving the right to take any necessary action in this respect themselves,
including the examination of individuals and the search of property. Three Japanese staff officers call on Gen. John
C. Beaumont, commander of U. S. Marines in Shanghai, apologizing for the Japanese intrusion in the American
defense sector, explaining that the officer in command was not familiar with the defense boundary lines. French
police halt five military trucks seeking to pass through the Concession, but finally permit them passage after placing
an armed French officer on each truck and providing the trucks with a French motorcycle escort. It is believed the
Japanese object was to establish a precedent for the transportation of military supplies through the Concession. The
Japanese War Minister informs the Cabinet that 50 Soviet airplanes have recently arrived in China. Japanese
newspapers in Peiping splash an appeal across their front pages requesting “every one to shower urgent advise on
the Chinese government to make peace. The League of Nations received a protest from China against Italy’s
recognition of Manchukuo, which is described as a violation of Italy’s obligations under the Covenant.

Dec. 5 . — Japanese bomb the riverside district at Wuhu, killing several hundred Chinese and wounding the captain
and two other Britons on the British gu boat Ladybird, also sinking two British river steamers. Reported that
Japanese are within 26 miles of Nanking, the streets of which present a deserted aspect. The 32 American residents
of the city are ready to board the U.S.S. Panay, American gunboat in the Yangtze river.

Dec. 6 . — The Japanese vanguard invades the mausoleum of Sun Yat Sen, father of the Chinese Republic, on Purple
Mountain, overlooking Nanking. Eden tells the House of Commons that he is “unable to accept the suggestion that
British possessions are in imminent danger in view of Japanese aggressiveness. Observers state Britain is unwilling
to take retaliatory measures at least until April when the rearmament program will be completed, but that military
experts are considering the possibility that Britain and France might fight Japan without bringing other nations into
the conflict, if there were sufficient provocation, and that the recent Anglo-French conversations dealt with the
“extent of moral support” given Japan by Hitler and Mussolini. Japanese residents at Shanghai in a mass meeting
adopt a resolution asking the government to take a determined stand and take all measures necessary in connection
with an incident during the victory parade involving a middle-aged British lawyer, E. T. Maitland, who allegedly
stamped on a Japanese flag. Maitland states that a Japanese civilian suddenly thrust a small Japanese flag into his
face and shouted, “Here! Wave this!” He then tried to put the flag in Maitland’s hand, and the Englishman broke the
small stick of the flag, whereupon he was assaulted by a number of surrounding Japanese and rescued from serious
injury only by a British police officer who took him to private quarters in a police station for safety. Reported that
Japan will open an airmail service between Tokyo and the mandated islands on December 15.

Dec. 7. — General and Madame Chiang Kai-shek leave Nanking in a plane for Nanchang, higher up the Yangtze
river. Reported that Russia has informed Britain it has no intention of acting against Japan unless other powers offer
full support.

Dec. 8. — The Japanese Foreign Office spokesman states that the United States, Britain, Germany, and Italy “may be
working toward peace” and that Japan is “waiting to hear the results of their efforts”. He points out that the four
powers have “large interests in China” as grounds for their concern in the conflict. “Japan has no peace plan. When
the Chinese government sues for peace, Japan will begin formulating details. . . The endeavor of any friendly nation
to bring China to take the initiative for peace would be welcome.” Another spokesman states Japan has no territorial
designs now but may demand territorial concessions unless China gives up the fight soon. Tokyo is reported to cling
to the hope that China will sue for peace with the fall of Nanking and reports are circulating that Japan may establish
an “autonomous” government in Central China and then “negotiate” with that government. The Japanese Chief of
Staff in Shanghai calls on Admiral Sir Charles Little, Commander-in-Chief of the China Station, British Fleet,
expressing regret in connection with the bombing of British vessels on the Yangtze. The United Press reports from
Hankow that the China National Aviation Corporation will soon establish a network of airlines connecting with the
Imperial Airways (British), Air France, and Pan American Airways for the establishment of a regular passenger and
mail service between western China and India to facilitate China’s communications with Europe because the
Japanese threaten to occupy the entire sea belt. The CNAC is owned jointly by the Chinese government and Pan
American Airways and has been successfully developing Chinese aviation during the past 7 years.

The rebels bomb Barcelona from the air, killing several hundred people.

Dec. 9 . — The Japanese capture Tachachao, half a mile from the gates of Nanking after a heavy air bombardment and
issue an ultimatum demanding surrender by noon Friday “or Nanking will become the scene of the horrors of war.
Abandonment of resistance will spare the city’s historic relics and spots of beauty”. The Chinese are resisting
stubbornly at Wuhu, strategic city southwest of Nanking. Some 240,000 Japanese troops are said to be engaged in
the drive against Nanking.

Dec. 10 . — Japanese capture several of Nanking’s gates and grim street fighting is in progress. Shanghai Chinese
bankers and industrialists issue a manifesto urging the government not to compromise with Japan and not to
entertain illusions that there is a possibility of midway compromise. “The war must be fought to a victorious end”.

Source : University of Michigan

Hartendorp, A. V. H. (Ed.). (1938). News Summary . Philippine Magazine, 35(1), 5-9, 61-62, 64-

66. Retrieved from https://archive. org/stream/acd5869. 0038. 001. umich.edu#page/n5/mode/2up

News Summary, Philippine Magazine: December 10, 1937 - January 10, 1938

News Summary
The Philippines

Dec. 10. — Former Senator Harry Hawes states in Washington upon returning from the Philippines that American
withdrawal “would invite cold-blooded murder from Japan right now”, and, showing newsmen pictures of Shanghai,
he states, “This is what would happen to the Filipinos. The Islands will be safe only so long as the Stars and Stripes
flies there”.

Dec. 11. — President Manuel L. Quezon sends a letter to Maj.-Gen. Lucius Holbrook expressing his appreciation of
the help given by the U. S. Army in the search and finding of Maj.-Gen. Paulino Santos and his party.

Dec. 12. — President Quezon is moved back to the Malacanan Palace after twenty days in the hospital following a
surgical operation for acute appendicitis.

The Philippine Army captures the five forts composing the Masiu cota.

Nearly a thousand passengers and crew of the S. S. President Hoover are huddled in makeshift shelters on the rocky
shore of Hoishoto Island, waiting for the S. S. President McKinley , which has been delayed by bad weather, to take
them off. Two U. S. destroyers, the S.S. Empress of Asia, and one or two Japanese warships are standing by. The
Hamburg-American freighter Preussen was the first to reach the scene, but left last night. Plans in Hongkong to send
a British tug to aid the liner are abandoned because of Japanese objections and a Japanese salvage ship will be sent.
The Hoove rwas the largest and most luxurious American ship on the Pacific, was floated in 1930, and cost
P16,000,000. It was off the regular route on its way from Kobe to Manila when it struck the rocks at full speed. The
stern is swinging free and the ship is pounded on the rocks with every surge of the surf.

Dec. 13. — Because of the unauthorized use of his name by various candidates in the coming elections. President
Quezon sends out numerous telegrams reiterating his complete neutrality.

Dec. 14. — Generally orderly provincial and municipal elections result in the election of governors and members of
provincial boards, all affiliated with the Nacionalista Party except Mrs. Cristina Suntay Aguinaldo, of the Popular
Front, elected a member of the board of Cavite, and Petronio Mataak, Independent, elected to the Marinduque
provincial board. Clear Socialist majorities are won in the municipal councils of San Fernando and Mexico,
Pampanga, but Pedro Abad Santos, Socialist candidate for Governor loses to Sotero Baluyut, although he scores
16,000 votes. In Manila the Nacionalistas for the first time gain control of the Municipal Board, with Miss Carmen
Planas, a third-year law student, winning the largest number of votes, and the others elected being H. Atienza, M. de
la Fuente, T. Mendoza, I. Regalado, B. Gatmaitan, A. Cecilio, V. Fugoso, M. Herrera, and E. Balagtas. Miss Planas
is affiliated with the Young People’s Party and de la Fuente with the Popular Front. The Office of the Manila City
Fiscal rules during the election that American citizens who are not Filipino citizens may not vote because under Sec.
431 of the Administrative Code as amended by Commonwealth Act No. 233, only “male or female citizens of the
Philippines can vote”.

The Philippine Army captures the Taraka cota, 6 Moros being killed and one officer wounded.

High Commissioner Paul V. McNutt, Mrs. McNutt and their daughter Louise, leave Manila on theU.S.S. Isabel for a
trip to the southern islands.

Fabian de la Rosa, outstanding Filipino artist, recently retired as Director of the School of Fine Arts, dies, aged 68.

Dec. 15. — Resident Commissioner Quintin Paredes leaves Manila for the United States on th ^Philippine Clipper.

Dec. 16. — The President McKinley brings some 400 of the Hoover passengers to Manila, some of whom tell tales of
lack of discipline and drunkenness among members of the Hoover crew, officers being unable to exercise discipline
ashore.

Dec. 1 7. — President Quezon signs the Appropriation Bill totalling P69,051,510 and a number of other bills.

Washington reports state that Paredes is bringing a personal message to President Franklin D. Roosevelt from
President Quezon regarding the reported disagreement between the American and Filipino members of the Joint
Preparatory Committee, while Ambassador John Van A. MacMurray reiterates that no serious break has occurred.

Members of the Hoover crew deny reports of widespread drunkenness and abuse of passengers, although admitting
there was some drinking “to keep warm” after the passengers had been put ashore.

Dec. 18. — In view of a number of protests. President Quezon orders the immediate prosecution of all violators of the
election laws.

G. A. Cu Unjieng, his son Mariano, and Rafael Fernandez are ordered by the Supreme Court to pay jointly and
severally more than P2,000,000 to the National City Bank of New York, the Malabon Sugar Company, and Smith,
Bell & Company by virtue of a denial of a motion for reconsideration of the original decisions, closing the last
chapter of the long-protracted case that arose from the obtaining of heavy loans through forged warehouse receipts.

Dec. 19. — The Hoover is reported to have broken in two pieces as a result of a storm. A U. S. destroyer and naval
tugs are standing by.

Dec. 20. — Announced that President Quezon has designated Paredes as Chairman of the Filipino group of the Joint
Preparatory Committee, to take the place of Secretary of Justice Jose Yulo, and that he has named Assemblyman
Jose E. Romero Vice-Chairman.

Jose S. Laurel, son of Associate Justice Jose P. Laurel of the Supreme Court, graduates with honors from the
Japanese Imperial Military Academy; it is stated he will serve as a probationary officer and later as a sub -lieutenant
in the Japanese army as part of his course of study.

Dec. 22. — Announced that the National Development Company has acquired from the Philippine National Bank for
Pl,500,000 the 40-hectare site and buildings of the defunct Philippine Vegetable Oil Company in Santa Mesa,
Manila.

The Supreme Court refuses a stay of execution of sentence imposed on Mariano Cu Unjieng, ending his seven-year
struggle. He was sentenced to from 5 to 7 years imprisonment.

The names of 26 new chaplains for the Philippine Army are released — 22 are Catholics, 2 Protestants, 2 Aglipayans,
and one Mohammedan.

Dec. 23. — A Popular Lront crowd of some 5000 persons march to Malacanan to protest against election irregularities
and demand a recount of ballots, but the leaders are unable to see President Quezon, who had made an appointment
for 7:30, as it is already 9:00 and he had retired. The President promises to see them the next day and Chief of Police
Antonio C. Torres diverts the people “with spicy stories”, according to the newspapers.

Mariano Cu Unjieng enters Bilibid.

Dec. 24. — President Quezon holds his first Cabinet meeting since his illness. It is announced that the Government
will not redeem the P13,000,000 Philippine Railway bonds on which it guaranteed a 4-1/2% interest for a 30-year
period, expiring the end of this year, as it is under no obligation to do so. The Railway has been in receivership since

the middle of the year. Announced that Jorge Vargas, Secretary to the President, will attest his signature on all
documents and will take charge of the Commonwealth Seal, formerly in charge of the Secretary of the Interior.

Reported that the U. S. Secretary of Commerce has requested High Commissioner McNutt’s office to gather
testimony as to the reported misbehavior of some of the crew of the Hoover.

Dec. 27 . — Three of the survivors of the U. S. S. Panay , sunk by Japanese bombs in the Yangtze river, arrive in
Manila — two naval lieutenants to be hospitalized at Canacao Naval Hospital, Cavite, and J. Hall Paxton, second
secretary of the U. S. Embassy at Nanking to proceed to the United States by th eHawaian Clipper tomorrow.

Thomas F. McIntyre, Deputy Chief of the Manila Fire Department, dies, aged 58, ending a career of more than 32
years in the Department.

Dec. 28 . — Preliminary statistics indicate that 1937 will mark the largest volume of trade between the United States
and the Philippines in recent history, totalling over P400,000,000, and setting a new post-depression record.

Reported that the estimated profits of the government Cebu Portland Cement Company for 1937 amount to between
P600.000 and P700.000

President Quezon issues an executive order declaring that in the expropriation of private property the government
shall not pay more than the assessed valuation for taxing purposes.

Fire in Fegaspi wipes out many blocks of buildings, including copra and hemp warehouses, doing damage estimated
at between P500.000 and PI, 000,000. The situation grew out of the control of the police authorities and looting and
robbery ensued.

Dec. 30 . — In a Rizal Day radio address, President Quezon announces that he has approved “the adoption of Tagalog
as the basis of the national language of the Philippines” as recommended by the Institute of National Language
pursuant to the provisions of Sec. 7 of Commonwealth Act No. 184, and that he does “hereby declare and proclaim
the national language so based on the Tagalog dialect, as the national language of the Philippines”, effective two
years from date. He quotes Rizal as stating that as long as a people preserves its language, it retains a token of its
liberty” and says that as President he has “many times felt the humiliation of having to address the people through
an interpreter” in those provinces where other than Tagalog is used. He states that his action “does not mean that we
are to abandon in our schools the study nor the use of the Spanish language, much less English which, under our
Constitution, is the basis of primary instruction. Spanish will preserve for us our Latin culture and will be our point
of contact with our former metropolis as well as with Latin America; English, the great language of democracy, will
bind us forever to the people of the United States and place within our reach the wealth of knowledge treasured in
this language. . . There was a time when it seemed that it would be impossible for the Filipinos to agree that one of
the native languages be chosen as the national language, but at last we have realized that if we are willing to accept a
foreign language as the official language of the Philippines, with more reason should we accept one of our own
languages as the national language of our common country.” The Institute of National Language based its
recommendation on the allegation that Tagalog is the language that “most nearly fulfills the requirements of Act No.
184”, not only "in the light of its own studies”, but “also in the opinion of Filipino scholars and patriots of diverse
origin and varied education and tendencies . . . not to mention the categorical views expressed by local newspaper
and individual writers”.

Vice-President Sergio Osmena in an eloquent address states that Rizal is still the conscience and moral leader of the
people.

General Aguinaldo in another address of the day accuses President Quezon of trying to lead the people “back to the
fold of the friars” and of close association with the Church, despite the constitutional mandate for the separation of
church and state, pointing, in support of his allegation, to the building of a chapel on Malacanan grounds, the
proposal to transfer the University of the Philippines outside of Manila which would compel many students to enroll
in the University of Santo Tomas, the proposed purchase of friar-owned plantations, and the “reintroduction of the
teaching of religion” in the public schools.

Dec. 31 . — President Quezon issues a press statement announcing that General Douglas MacArthur, who retires from
the U. S. Army, effective today, will remain in the Philippines as military adviser to the Commonwealth
government.

Government officials are reported to be congratulating themselves on a P90,000,000 cash surplus after meeting one
of the biggest budgets in years, and on a total foreign trade of about P500,000,000 for the year. The cash surplus is
due largely to the oil excise tax refunds from the United States. The only dark side of the picture is said to be the
uncertainty in the United States-Philippine relationship.

Jan. 1 . — The new Manila councellors are inducted into office by Mayor Juan Posadas. Hermenegildo Atienza is
elected President of the Municipal Board.

Gregor Merrill, new American Consul, arrives in Manila to take the place of Henry B. Day who will leave soon to
assume his new post in Sydney, Australia.

Jan. 3 . — President Quezon places all public construction work in Manila under the supervision of the insular Bureau
of Public Works; heretofore, the City Engineer has been more or less independent of the Bureau.

Secretary of Agriculture and Natural Resources Eulogio Rodriguez states that the government does not propose to
buy only friar lands but also other large estates for resale to the people in continuation of a policy stated by
Governor Taft. “The only stain on the early government administration of the friar-land estates by the government,”
he states, “was the success of certain influential persons in acquiring big lots within these estates, who have not
made much effort toward paying the price agreed upon” — one of whom, the Secretary declares, is General
Aguinaldo.

Announced that the controlling interest of Erlanger & Galinger, Inc., has passed from Major William H. Anderson to
H. N. Salet, Vice-President and Manager of the company for many years. The firm operates Radio Manila, and does
a large import business.

Philippine “G-men,” working under the direct command of Capt. Thomas Dugan, New York police officer on detail
with the Commonwealth government, make their first arrest when they capture Gonzalo Matias, alleged accomplice
in the murder of Percy A. Hill, in Santa Maria, Bulacan. The man had been missing since the day of the murder last
July.

Jan. 4 . — Malacanan announces the designation of Lieut. -Col. E. J. Strickler of the U. S. Army Medical Corps to
conduct a survey of the Manila Psychopathic Hospital.

President Quezon, on a short cruise on the yacht Casiana, calls unexpectedly at Iloilo.

Jan. 5 . — Assemblymen Romero and Manuel Roxas, members of the joint prepatory committee, leave for the United
States.

The Italian lightcruiser, Raimondo Montecuculi, visits Manila.

Jan. 6 . — High Commissioner McNutt announces he will fly to Washington on January 29 to report to President
Roosevelt on general conditions in the Philippines, and that he will first make a short flying trip to Davao.

Dr. William H. Brown, former Director of the Bureau of Science, leaves for the United States to become professor
of botany at Johns Hopkins University.

Jan. 7 . — President Quezon issues an executive order providing for the collection of historical data on Philippine
barrios, municipalities, provinces, and cities by local government officials. After inspecting the Manila Railway

Company’s new 39-kilometer section bridging the gap between Aloneros and Ragay, completing the connection
between Manila and Legaspi, President Quezon wires a message of satisfaction to Manila.

Two supposedly Japanese motorboats, each about 100 feet long and equipped with radio, are reported to have been
sighted off Pasuquin, Ilocos Norte, as suspected of making soundings.

Press messages are being received in Manila from Shanghai by way of the Trans-Siberia cable to Europe and back to
the East by radio because of the disruption of communications by the Japanese.

Jan. 8 . — Reported that the Manila Railroad Company has made a net profit of over PI, 500,000 last year, showing a
profit for the first time in four years.

Jan. 10 . — Between 8,000 and 10,000 U. S. Army men and some 20,000 Philippine Army troops begin joint war
maneuvers in Pampanga and Tarlac.

The United States

Dec. 16 . — Former President Herbert Hoover blames the new business depression on the “New Deal” and its
“increasing control of prices, wages, volume of production, and investments” and offers as alternatives “intellectual
and spiritual liberty” and “cooperation” between government and business.

The Senate maritime committee orders an investigation into the reports of misbehavior of the lloovercrcw. The
Bureau of Maritime Inspection and Navigation states it is officially uninformed of the matter.

Dec. 1 7. — The Senate passes the crop control bill providing for government control of wheat, com, cotton, tobacco,
and rice production for 3 years and authorizing the Department of Agriculture to fix quotas with the approval of 2/3
of the number of farmers involved; penalties are provided for violations. The bill now goes to a joint Senate -House
conference committee.

Rep. Louis Ludlow’s petition providing for a war referendum having been signed by 218 members and the House
therefore being forced to act on it. President Franklin D. Roosevelt states that he does not believe a referendum on
war would be consistent with the representative form of government.

Rep. Thomas O’Malley (D. Wisconsin) introduces a resolution providing for immediate independence for the
Philippines, the Islands thereafter to be treated as any foreign country. Sen. M. F. Tydings states the resolution
indicates that it has been prepared “without thought or knowledge of the situation.”

Dec. 18 . — Robert W. Bingham, Ambassador to Britain, dies at Johns Hopkins Hospital following an operation, aged
66 .

Dec. 19 . — Liberals led by William Allen White, Oswald Garrison Villard, Stuart Chase, Upton Sinclair, Rabbi
Wise, Monsignor J. A. Ryan, and others of all political parties, organize the “American Association for Economic
Freedom” the aim of which is to protect free unionization and collective bargaining in industry. The organization
criticizes the “vigilantes” and “citizens’ committees”, “financed by reactionaries in high places”, which resort to
“unconstitutional methods of violence and armed terrorism” and “constitute a threat to self-governing institutions”.

Dec. 20 . — President Roosevelt confers with Under-Secretary of State Sumner Welles and Ambassador John Van A.
MacMurray on the Philippine question. Welles has not hitherto been concerned with Philippine affairs and the visit
is interpreted as indicating that the Philippine problem is being considered from a broad Pacific viewpoint and that
the main interest now is diplomatic and political rather than economic.

The Senate ratifies the London Sugar Agreement of May 6, 1937, providing for the regulation of the production and
marketing of sugar and for export quotas for a period of 5 years. Secretary of Agriculture Henry Wallace announces

1938 sugar quotas totalling 6,861,000 tons as compared with the final 1937 quota of 7,042,00. The Philippines is
given an increase from 998,000 to 1,057,000 tons, other areas being cut due to the decline in consumption.

Dec. 21 . — Frank B. Kellogg, former Secretary of State and one of the authors of the Kellogg-Briand Pact, dies of
pneumonia in St. Paul, aged 81.

Dec. 22 . — President Roosevelt assures congressional leaders that the administration’s program, including the wages
and hours bill which failed to pass during the special session just closed, will go forward in the regular session, and
that his housing and power development plans and his plans for limited tax revision will not be changed.

Dec. 23 . — Ambassador MacMurray and Joseph Jacobs tell Commissioner Quintin Paredes that they favor an early
resumption of the meetings of the Joint Preparatory Committee on Philippine Affairs and express the hope the
Filipino members will come to Washington at the earliest convenient time after the holidays; Paredes states he will
so advice President Manuel L. Quezon. With reference to the O’Malley resolution, Paredes states that
“independence is what the Filipino people want, but not under the terms of this resolution which shows “a lack of
information on the subject”. He states he favors amending the Tydings-McDuffie Act to bring about immediate
independence but with a trade agreement for 15 more years.

The National Labor Relations Board rules that the Ford Motor Company has violated the Wagner Labor Act and has
inspired "incredibly brutal attacks” on union members and displayed “utter ruthlessness” in fighting the United
Automobile Workers of America in an effort to “crush union organization”. It orders the Company to cease these
activities and the organizing and supporting of “vigilante” groups for purposes of coercion. A Ford spokesman states
the Company will refuse to comply unless the case is lost on an appeal to the courts.

Dec. 24 . — The Samoan Clipper of the Pan-American Airways inaugurates the United States-New Zealand service.

Dec. 25 . — Newton D. Baker, Secretary of war dining the World War, dies in Cleveland aged 60.

James King Steele, former Executive Secretary of the Philippine Tourists Association, dies in Reno, Nevada.

Dec. 26 . — Assistant Attorney-General R. H. Jackson blames the business slump on monopolists and warns that
unless prices are brought more in line with consumers’ income, government spending will have to be increased,
meaning heavier taxation. He states that the impression that the steep price increases are traceable to wage boosts
due to labor union activity is “only half accurate” and cites the steel industry in which wages increased 10% but
prices 21%. He states Roosevelt and Congress “will not let the people down”.

The Federal Tariff Commission in a report on Philippine business declares that it is not certain that the 10-year
transition period is “sufficient to permit the adaptation of Philippine economy to the loss of duty-free entry into the
United States in respect to certain major industries exporting chiefly to the United States.”

The Samoan Clipper arrives at Auckland after a 14-hour hop from Pago-Pago.

Dec. 29 . — The United Press reports that official circles in Washington are tentatively formulating a general
Philippine program embracing wide economic and political changes all of which would require congressional
approval, — including non-recommendation of independence before 1946; preferential trade relations afterward only
by formal treaty in order to preserve for the United States an equitable share in the Philippine market and vice versa;
a temporary tariff to be established to cover the period between the grant of independence and the conclusion of
such a treaty; slight modifications of the present graduated Philippine export tax program especially in respect to
coconut oil, cigars, and sugar; political and economic devices which would take cognizance of the danger of
Japanese penetration in the Islands; guarantees for relative security of American capital at present invested in the
country; and a schedule of tariff and economic concessions to be granted American manufacturers of automobiles,
textiles, electric power machinery, etc., in exchange for American concessions to the Philippines in respect to sugar,
oil, etc.

Dec. 30 . — Secretary of the Interior Harold L. Ickes in a radio address delivers a scathing rebuke to big business,
stating that its attitude toward the administration’s reform program is a challenge to the American people and that
“moneyed aristocrats, corporate earls, and ducal economic overlords” are threatening to “enslave America by a “sit-
down strike on the part of capital”. He demands that business purge itself of “its Fords, Girdlers, and Rands before it
presumes to tell the people what they should and should not do about the troubles caused by labor’s wars” and to
“call off the lobbyists, newspaper commentators, and lawyers.”

Jan. 1 . — The federal unemployment insurance system goes into effect in 21 states and the District of Columbia,
affecting 12,000,000 workers who have already built up a fund of approximately $440,000,000. In order to receive
payments, a man losing his job must have registered in an unemployment office and not have found work. The
National Unemployment Census Bureau announces that the total unemployed number between 7,822,912 and
10,870,000, based on a voluntary registration of the unemployed coordinated with a house to house canvass in
selected areas; this means about 12% of the adult population of the country.

Jan. 3 . — The 75th Congress convenes. President Roosevelt states in his message that the “misuse of power by
capital must be ended or the capitalist system will destroy itself through its own abuses”. He calls for cooperation
between labor and capital and states that “both groups should realize that power and responsibility go hand in hand .
. . Chiefly because we need national unity in ending the mistakes of the past and meeting the necessities of today, we
must carry on. I do not propose to let the people down and I am sure that the Congress of the United States will not
let the people down”. He warns the nation it must prepare for defense against “future hazards” in a world full of
"high tension and disorder, a world where stable civilization is actually threatened”. He reiterates his recent
denunciation of aggressor nations and expresses thanks that America is at peace “despite provocations that in other
days could have engendered war”. “The preservation of peace seemingly depends on the democracies”, he states. He
declares it is shameless misrepresentation to call the policy of preventing a glut in farm produce a policy of scarcity,
and says that adequate supplies and reserves are embraced in the policy. “But raising the purchasing power of the
farmers is not enough. Millions of industrial workers receive pay so low that they have little buying power. Wage
and hour legislation is a problem definitely before Congress for action. It is an essential part of economic recovery
and has the support of an overwhelming majority of the people in every walk of life.” He calls attention to the
increase in the national income during his administration from $38,000,000,000 to $68,000,000,000 and states his
aim is to raise it to $90,000,000,000. “The proposed budget for 1939 will exhibit a further decrease though not a
balance between income and out-go. I am as anxious as anyone that the budget be brought to balance as quickly as
possible, but I believe all should accept that, first, we must continue our policy of not permitting any needy
American who can and is able to work, to starve. ... We should raise the purchasing power of the nation to a point
where the taxes on this purchasing power will be sufficient to meet the necessary expenditures of the national
government.” Sen. W. E. Borah states it is time to legislate against monopolies and Rep. Martin Dies introduces a
resolution providing for a committee of seven to investigate the “astounding charges” of Secretary Ickes and
Assistant Attorney-General Jackson.

The Supreme Court upholds the constitutionality of the Public Works Administration grants to municipalities for
power production.

Dollar Line officials at San Francisco announce they have abandoned the Hoover to the underwriters.

Jan. 4 . — Chairman J. P. Kennedy of the U. S. Maritime Commission and four experts leave Washington for the
Pacific Coast to study trans-Pacific passenger and freight service now crippled by the loss of the Hoover. The
government is reported anxious to prevent foreign countries from taking a larger share of the trade especially in
view of the Far Eastern situation.

Jan. 5 . — Associate Justice George Sutherland announces he will retire from the Supreme Court on January 15. He is
75 years old and was nominated by President W. G. Harding in 1922.

Jan. 6 . — President Roosevelt appeals to his party leaders to kill the Ludlow war referendum resolution as its
adoption would "invite world-wide aggression by militaristic nations”. Secretary of War Harry Woodring states the

action would “increase and not diminish the danger of war” and that it would “terribly handicap the government in
dealing with autocratic nations who would know that the President and Congress would be helpless”.

Jan. 7. — William Green, President of the American Federation of Labor, warns that the workers will demand that
Congress act promptly and effectively to combat the current business depression which has resulted in the discharge
of 1,770,000 union laborers in the last 4 months. He advocates government regulations shortening working hours
without a decrease in pay, a permanent public works program, expansion of slum clearance and public housing,
stimulation of home industries, enlargement of the benefits of the Social Security Act, expansion of the Works
Progress Administration, etc.

John L. Lewis, Chairman of the Committee for Industrial Organization, states that “perhaps it is time something else
is tried to replace the present business and government management system. Democracy is on trial. ... I can not say
what may happen, but I know some people have found they could live happily and successfully under a communal
form of government in which the whole and not a few are given consideration”.

Herbert Hoover and Charles G. Dawes, former Vice-President, accept membership in the Republican Party’s
program committee but both decline the chairmanship. Alfred M. Landon, former presidential candidate, declined
membership — believed to indicate a widening rift between Hoover and Landon. Glen Frank becomes chairman.

Pan-American Airways opens a regular bi-weekly air service between San Francisco and Auckland but only cargo
will be carried for the time being.

President Roosevelt nominates J. P. Kennedy as Ambassador to Britain, and Hugh Wilson, at present Assistant-
Secretary of State Ambassador to Germany. He also orders the transfer of Ambassador J. E. Davis from Russia to
Belgium. William E. Dodd, who recently resigned as Ambassador to Germany, returning to New York, bitterly
criticizes the Nazi regime for its denial of religious freedom, its suppression of intellectual initiative, and its daily
inculcation of race hatred, and states that the logical outcome of its vast preparations for war is another war.

Jan. 8 . — President Roosevelt in a Jackson Day address states that he has noted an improvement in the understanding
of his program in regard to concentrated monopoly power despite the efforts to distort his criticism. He states he
desires the same type of regional control of financing which he is seeking in the utility field. He states that 4% of the
$13,000,000,000 in utility securities controls the total — "here is a 96-inch dog being wagged by a 4-inch tail”.

The Commerce Department announces that affidavits of passengers minimize the reports of the misbehavior of
the Hoover crew and that only a few of the members became drunk and disorderly. “Several statements refer very
favorably to certain individuals and a majority of the crew”.

Allegedly in view of reports that Congress would grant immediate independence to the Philippines only with a
termination of trade privileges, it is reported that the American members of the joint preparatory committee will
decline to consider recommendations for preferential trade relations in case immediate independence is granted.

Jan. 5 . — In his budget message President Roosevelt demands that Congress curtail pork-barrel spending, warning
that another billion dollars may be needed for relief while the current depression has crushed hopes of an immediate
balancing of the budget. Congressmen facing elections are reported to be rebellious. Roosevelt also proposes a
record peace-time defense budget of almost a billion dollars, stating further increases may be necessary “because of
future events which can not definitely be foretold.”

Other Countries

Dec. 11 . — Premier Benito Mussolini, after the announcement of Italy’s resignation from the League of Nations,
delivers an address declaring that “our presence in Geneva is impossible any longer. We leave a tumbling temple
where there is talk of peace but preparation for war.” We are not afraid of Democracy. We have many land, sea, and
air weapons, tempered by two victorious wars.” He states, however, that Italy will continue to collaborate for peace.

The move was expected since Italy has taken no part in League meetings since May 1936, and there is no inclination
to attach undue significance to the action in England. A German daily owned by Gen. H. Goering, states that the
League is “now nothing more than an institution representing the interests of the three biggest landowners in the old
world — Britain, France, and Russia, and that Italy’s exodus will show that the era of denying every other nation its
vital rights is steadily approaching its end.

Dec. 12. — The U. S. gunboat Panay, anchored 29 miles up river from Nanking, is reported to have been bombed and
machine-gunned and sunk by Japanese planes, killing one sailor and injuring a number of other Americans and
foreigners aboard the ship. Simultaneously they bombed a number of Standard Oil Company boats, sinking three.
Among those aboard he gunboat we American Embassy officials and newspaper correspondents, including Jim
Marshall of Collier’s . The survivors landed at Hohsien. The 450-ton Panav was built 10 years ago. Reuter reports
that Japanese field batteries and machine guns at Wuhu fired on the British gunboats Ladybird and Bee and another
British-owned vessel, scoring four direct hits on the Ladybird and killing one man and wounding several more. The
English tug Tsingtau, carrying the British Consul to Nanking and Lieut. -Col. Lovat-Fraser, British military attache,
was also fired on. The Associated Press states that the vessels lay in the line of fire directed at Wuhu. The Japanese
seize a Chinese customs cruiser which, pursued by a destroyer, made a dash for British waters and was beached at
Castle Peak, Honkong bathing resort, where the crew went ashore. The Japanese destroyer later sent two motorboats
which towed the cruiser into Chinese waters, where a prize-crew was put aboard. Most of the fighting at Nanking is
still in the hills surrounding the city, including Purple Mountain where the Sun Yat-sen mausoleum is. Reported that
Washington is studying reports that Japan is building three monster battleships of 46,000 tons carrying 16-inch guns,
and has 65 other warships under construction, including five aircraft carriers.

Elections in Russia to the first Soviet parliament under the new constitution result in the election of 184 women and
288 non-party candidates among the total of 1 143 deputies.

Dec. 13. — Secretary Cordell Hull states that the State Department is gathering the facts in the Panaycase and will
have something to say tomorrow. Admiral K. Hasegawa calls on Admiral H. F. Y arnell expressing his deep regret.
The Japanese Consul-General in Shanghai calls on the American Consul-General and states the incident was a
“terrible mistake”. He says the Japanese fliers were unable to see the flags and believed the ships to be Chinese. The
fighting in the vicinity has been ordered stopped and help has been sent, he states. Foreign Minister Koki Hirota
calls on Ambassador Joseph C. Grew and expresses “profound apologies”, and a War Office official calls on the
British military attache expressing regret at the firing on the British gunboats. News of the sinking of the Panay is
suppressed in Japan. Japanese bombing planes three times attack the British gunboats Cricket and Scarab in the river
near Nanking, the warships replying with machine-guns; there were not hits on either side. The Japanese announce
the occupation of Nanking, but Chinese deny the claim. According to Japanese reports some forty Italians serving
with the Chinese airforce have resigned.

A Berlin communique declares that Germany’s return to the League after Italy’s withdrawal can not now be
considered, Germany is convinced that the political system at Geneva is doomed to failure. The statement is taken
much more unfavorably in League circles than the Italian withdrawal itself. A Vienna newspaper owned by
Chancellor Kurt Schuschnig states there is no reason for Austria to become unfaithful to the League and that it is not
considering modifying its policy in this respect.

Dec. 14. — According to an official statement issued from the U.S.S. Augusta, two persons that were aboard
the Panay are dead and 8 are badly wounded, the dead being C. L. Ensminger, store -keeper of the ship, and B.
Sandri, an Italian journalist. The report was based on a message from the British gunboat Bee which established
contact by telephone with the Panay party now at Hanshang, 16 miles from Hoshien. The message concluded with
the statement, “The Japanese are rendering every assistance”. Marshall is reported among the wounded. The
Washington Post states that the deliberate attack on the Panay which at the time was virtually a floating embassy, is
"the type of aggression for which statements of ‘deep regret’ by the smooth tongues of Japanese diplomats is totally
inadequate”. Sen. Key Pittman states, “It is little satisfaction to have the Japanese government on each occasion
express regret. It seems to be the practice of the Japanese government to grant broad discretionary power to its army
and navy officers in the field. Some high Japanese officers are responsible for such outrages. The names of these
officers should be determined and they should be punished.” Hull hands Ambassador H. Saito a memorandum
personally dictated by President Roosevelt, photographic copies of which are also handed to the press, the White

House declaring the President hopes for the full sympathy and support of the public. The memorandum, in the form
of instructions to Hull, states: “Please tell the Japanese Ambassador when you see him at one o’clock: firstly, that
the President is deeply shocked and concerned at the news of the indiscriminate bombing of American and other
non-Chinese vessels in the Yangtze river and that he requests the Japanese Emperor be so advised; secondly, that all
the facts are being assembled and will shortly be presented to the Japanese government; thirdly, that in the meantime
it is hoped the Japanese government will be considering definitely for presentation to this government full
expressions of regret, a proffer of full compensation, and adoption of methods guaranteeing against repetition of any
similar attack in the future.” The demands are considered the strongest the United States has presented any foreign
power in modern times. It is indicated further United States action may be anticipated in the event the demands are
not satisfied and that there are various measures that could be taken — short of war — to injure the finances, trade, and
prestige of Japan. Later the State Department announces that a formal protest has been delivered to Japan,
embodying the President’s demands and reciting as essential facts that the vessels were in the Yangtze river by an
uncontested and uncontestable right, that they were flying the American flag, that they were engaged in legitimate
and appropriate business, that they were at the moment conveying American officials and private personnel away
from points where danger had developed, that at several times they changed their positions moving up the river to
avoid danger, and that they were attacked by Japanese bombing planes. The note cites Japanese promises to respect
American rights and refers to the futility of mere apologies. “Under these circumstances the government of the
United States expects the Japanese government will make complete indemnification and assurance that definite and
specific steps have been taken which will insure hereafter American nationals’ interests and property in China will
not be the object of attacks by Japanese armed forces or of unlawful interference by any Japanese authority or forces
whatsoever”. Hirota addresses a note to Grew promptly meeting in principle all the major points made in the
American note. Emperor Hirohito is reported as having “quietly received” Roosevelt’s memorandum, a high official
stating that the prompt presentation of the American demands to the Emperor “best illustrates the extent of Japan’s
eagerness to face the music squarely”. The Japan newspapers carried factual stories about the “mistake” and it is the
chief topic of conversation, Japanese civilians stopping Americans on Tokyo streets, doffing their hats, and
expressing their sorrow at the incident and taxi-drivers and waitresses in restaurants conveying similar expressions.

Britain sternly warns Japan that further outrages against British property and interests will make Britain feel free “to
take any action necessary”. The London press is indignant at the attacks on British and American vessels in the
Yangtze and demands stronger action in the Far East. The German Foreign Office also lodges a complaint with the
Japanese Embassy in Berlin concerning the Japanese artillery attack on a British steamer which had aboard members
of the German Embassy in China, although there were no casualties; the officials later transferred to a British
gunboat.

A British hint for joint withdrawal of the British and American Ambassadors from Tokyo is reported not to meet
with approval in Washington, where the British refusal to cooperate with the United States government during the
Manchurian crisis has not been forgotten. Fears are expressed in London that Japan is attempting to separate the
United States and Britain, citing as evidence that apologies to the United States have been much more elaborate than
those to Britain. A British official states that Roosevelt’s alternative is to cooperate with other powers or pull out of
China. I. A. Mackenzie, Canadian Minister of National defense, states that schemes for the fortification of the
Atlantic and Pacific coasts have been completed. “At present we are concentrating our expenditures on the Pacific
coast for strategic reasons”, he states. N. M. Hubbard, President of the Navy League, urges cooperation between the
United States and Britain to halt Japanese aggression in China, stating the Japanese are attempting to “worry the
American gunboats from the Yangtze river” as part of a policy to drive all Occidentals out of China with the
possible exception of Germans and Italians. A Japanese Navy spokesman at Shanghai suggests withdrawal of
American and British gunboats from the river as the “most practicable” way preventing further incidents, but
Admiral Yarnell declares that vessels of the U. S. Navy now in China waters will remain there for the protection of
United States nationals as long as such necessity exists.

The Japanese announce they are in complete control of Nanking, Chinese forces having withdrawn yesterday after a
week of heavy fighting on order of Generalissimo Chiang Kai-shek who has issued a statement declaring that the
withdrawal does not materially affect the policy of the Chinese government to resist the Japanese and that it was
made to strengthen the Chinese position and to avoid heavy sacrifices. Since the seat of the government has been
moved, he states, Nanking is no longer of military significance.

The Provisional and Temporary Government of the Republic of China is proclaimed at Peking, among those present
being M. Morishima, Counsellor of the Japanese Embassy, and Gen. S. Kita, head of a special Japanese military
mission. There is as yet no chief executive, but the government is to function with executive, legislative, and judicial
councils, Wang Keh-min heading the executive council. Premier Prince Fuminaro Konoye states that the former
Nanking regime is a “mere shadow of a government” and that Japan has “necessarily taken concrete measures to
bring about the proper administration of China”. Reported from Washington that the United States will not
recognize the new government. “Well-informed quarters” in Berlin, states Reuter, state that the new government
will not modify Germany’s relations with the government of Chiang Kai-shek whom Germany continues to regard
as the head of the sole legal government of China.

Two more important Shanghai Chinese dailies suspend publication as a result of the Japanese demand that they
submit proofs before publication and give favorable publicity to the various “puppet” organizations.

Hirota’s note to Grew is made public accepting full responsibility for the sinking of the Panay, apologizing for the
incident, guaranteeing similar incidents will not occur again, promising indemnification for all losses, engaging to
deal appropriately with those responsible, and expressing the fervent hope that Japanese-American relations will not
be affected unfavorably by the most unfortunate affair. The first of the Panay survivors reach Shanghai aboard a
Japanese plane. Marshall states the Japanese dropped 12 bombs around the Panay , flying so low that it was
impossible for them not to know it was a foreign ship, visibility, moreover, being excellent. The Panay opened fire
on the Japanese planes and kept the machine-guns blazing until the boat sank. The number of deaths now reported is
three. The American press generally accepts the bombing of the Panay as a mistake, but urges President Roosevelt
to secure definite guarantees against repetition. The Chicago Daily News states that “none but a fool wants war but
none but fools think they can escape war by announcing in advance that no matter what the provocation, they will
not fight. The Panay would be afloat and we would not be confronted with our most serious international situation
since the world war, had not the Japanese military leaders been convinced that Senator Nye and a numerically
insignificant group of pacifists constituted a cross-section of public opinion”. The Navy Department discloses that
the annual Pacific maneuvers will be held from March 14 to April 29 and will cover the widest area included in
maneuvers in recent times, reaching from Alaska to Hawaii and Samoa.

The Provisional government of China at Peking announces it will govern all Chinese territory from which the
Kuomintang is driven out by the Japanese and that it has been granted de facto recognition by Japan.

Britain orders a concentration of military forces at Suez, reportedly alarmed by increasing evidence of Italian war
preparations in North Africa.

Hungary makes a token payment of $9,800 on its war debt to the United States, the first of the 15 debtor nations
except Finland to resume paying since 1932.

Dec. 16 . — Hull announces that official reports confirm charges that the Japanese planes and later Japanese surface
vessels machine-gunned the Panay and the survivors in small boats although the American colors were easily
discernable, and also that the ship was boarded by Japanese afterward just before it sank. He indicates this makes the
incident more serious than it appeared at first as the Japanese explanation was that it was a “mistake”. Japanese
authorities deny the machine-gunning. The Tokyo Naval Ministry announces that a company of marines will be
detailed to honor the victims at the place they died, said to be the highest possible voluntary salute from one nation
to another. It is also announced that a high naval officer connected with the air corps in China has been recalled to
Japan as the officer responsible for the bombing, understood to be Rear-Admiral Teizo Mitsunamie. William Green
Read of the American Federation of Labor asks all affiliates to boycott Japanese goods “as a moral weapon which
the American people may use in opposition and protest against the aggressive and undefensible war Japan is
waging”.

While Japan stages a triumphal entry into Nanking. Chiang Kai-shek broadcasts from his headquarters somewhere
in central China, “We must not surrender. We will do our utmost and not depend on others. I pledge myself to an
unswerving pursuance of this course”. American eyewitnesses state that conditions in Nanking are horrible, the
Japanese raping, looting, and killing. “Nanking is a shambles. All Chinese bearing evidence of being soldiers are

mercilessly shot to death with pistols”. Reported from Canton that 18 large Japanese transports left Formosa several
days ago for an unknown destination, this being believed to indicate that a large-scale attack on South China is
imminent. The Japanese spokesman in Shanghai states he has no knowledge of the matter. The new Peking
provisional government takes over the customs at Tientsin and Chinwangtao. All members of the government called
on General Count Terauchi, commander-in-chief of Japanese troops in North China, to thank him for his help in
establishing the regime.

Britain dispatches another strongly- worded protest against the repeated Japanese attacks on British nationals and
property, asking for positive action.

Dec. 17. — The U.S.S. Oahu, a gun-boat, conveyed by British and Japanese warships, arrives in Shanghai with the
dead, wounded, and rescued survivors of the Panay and the Standard Oil Company ships which at the time of the
attack were conveying Chinese employees of the Company from the scene of danger. The dead are Captain C. H.
Carlson, oil boat skipper; Sandro Sandri, Italian newsman; U. S. seaman L. Ensminger; and the Chinese
quartermaster of one of the oil boats. Unconfirmed reports are to the effect that the Tokyo government is considering
recalling the entire Third Fleet from China and replacing it with the Second Fleet, but the importance of “face-
saving” is held in mind and also Admiral Flasigawa’s valuable services during the Shanghai crisis. Chinese reports
declare that the Japanese are building an air base on Kimoi island, off Amoy, for use as a center of action in South
China. Reported that the services of Japanese and other alien employees in the quartermaster corps of the U. S.
Army in the Philippines are being dispensed with; authorities state the process began last July pursuant to the
provision in the 1938 budget act which specify that beginning the first of this year all alien employees must be out of
the army.

Spanish government forces claim an important victory at Teruel, insurgent controlled city in southern Aragon.
Rebels arrest a number of persons on the charge of conspiring to assassinate General Francisco Franco and other
fascist leaders.

The Cabinet meets in Washington to consider the Panay incident, and one member states afterward, “The situation
is grave”. Admiral William Leahy, Chief of Naval Operations, states, “A very tense situation exists”. Responsible
sources state that Roosevelt is determined to obtain definite, concrete Japanese guarantees against future attacks
before considering the Panay case closed, and Hull states he is seeking more responsible authority than the civilian
government of Japan to underwrite these guarantees, as past experience has demonstrated the inability of the Tokyo
civilian government to control the military and naval machine. Official sources state that American military and
naval advisers have proposed specific measures to take if Japan does not give satisfaction. Japan is reported worried
by the reaction in the United States and the Japanese Cabinet also holds a session. A spokesman states that the
machine-gunning charges presented in a second note delivered by Grew today may delay the formal Japanese reply
to the first American protest as “this is a most serious type of charge to make and justice on both sides demands full
investigation”. The British Admiralty is reported to be secretly preparing to send part of the Mediterranean Fleet on
a forced run to the Orient on a moment’s notice, including three capital ships, headed by the Hood; the report is
denied in London. Chinese forces in Tsingtao begin the destruction of 300,000,000 yen-worth of cotton mills and
other Japanese property and two U. S. warships leave Shanghai for the port to protect the 300 Americans there.
Japan protests to Russia against the arrest of 7 Japanese nationals in Vladivostok and in north Saghalien on charges
of espionage, claiming they were never put on public trial.

Dec. 19. — The U.S.S. Augusta, flagship of the U. S. Asiatic Fleet, postpones its departure to Manila for the second
time due to a decision to await the closing of a naval court of inquiry into the Panay case. News-reel negatives of
eyewitness cameraman, Norman Alley, of Universal News, and Eric Mayell of Fox Movietone, are being rushed to
Manila by the U. S. S. Stewart to be placed aboard the next Pan-American Clipper for the United States. Coxwain E.
W. G. Hulsebus of the Panay dies of his wounds in Shanghai, bringing the total death roll to 5. Emperor Hirohito is
reported to have received a detailed account of the Panay case from Konoye following an extraordinary session of
the Cabinet, during which, it is stated, army and navy representatives insisted that the measures already taken were
sufficient to satisfy the United States. President Roosevelt asks Congress to approve an appropriation of
$576,000,000 for a naval program, including the construction of two super-dreadnoughts and 20 smaller craft.
Officials of the War, Navy, and State Departments privately indicate a growing conviction that America’s foreign
policy must be stiffened, particularly regarding the Orient, and signs are revealed that a “Big Stick” policy may be

emerging for the first time since the days of President Theodore Roosevelt. Raymond Buell, President of the Foreign
Policy Association, proposes an international trade and financial boycott to crush the Japanese military machine and
a subsequent conference at Washington to adjust Japan’s “legitimate grievances with China and the outside world”,
suggesting that the conference should end the special positions of all powers in China. In a national radio hook-up.
Ambassador Saito publicly apologizes for the Panay affair, calling it a “shocking blunder” and declaring that the
“Japanese people and government are grieved beyond expression of words”. Reported that Japan has nearly a
million soldiers in China — 300,000 to 350,000 in Manchukuo, 200,000 to 250,000 in the Peiping area, and 250,000
to 300,000 in the Yangtze valley. The British ask the Japanese to establish a safety zone in Hankow where a
thousand British nationals are concentrated. Russia announces that it is completing a new 100-mile railroad
paralleling the Trans-Siberian on the north and extending from Karymakaya to Khabarovsk. Eight important Russian
officials are executed, including Leo Karakhan, former Vice-Commissar of Foreign Affairs, who was recently
recalled from Turkey, and Avel Yenukidze, former Secretary of the Central Executive Committee and close friend
of Josef Stalin. They pleaded guilty to charges of “high treason, terroristic activities, and systematic espionage for
the benefit of a foreign power”. The “purge” has now taken a total of 1300 known lives.

Dec. 20 . — The report of Maj.-Gen. K. Harada, Japanese military attache in China, on the Panay affair is in amazing
contradiction to previous reports, stating the Panay was moving, that it fired cannon at troops ashore, that there was
no machine-gunning, but he later admits he had conducted his investigation from Nanking and had not personally
talked to any of the Japanese officers or soldiers involved that the investigation is still going on, and that he will
make a new report if Tokyo is not satisfied with the present one. The people of Japan are being kept ignorant of the
machine-gunning phase. The Vice-Chief of the Soviet Secret Political Police states that the United States is “overrun
with Japanese spies, particularly the Pacific Coast area and the Panama Canal Zone. . . Japan, in its turn, seems to be
an area of American intelligence services”. Movements of warships along the California coast under secret orders
lead to the belief that the Navy is testing emergency mobilization speed. Hull states that the United States has long
expected to withdraw American ships and men from the Orient “when their appropriate function there is no longer
called for”, but that the present “does not seem an opportune moment.” Britain is reported to have informed the
United States that it is prepared to send a strong part of its Mediterranean fleet to the Far East if the United States is
prepared to move its Pacific fleet farther west. Viscount Kiku Jiro Ishii states in London that Japanese opinion was
“wounded” by the abrogation of the Anglo-Japanese Alliance and suggests that the two countries get together and
settle their differences by issuing simultaneous statements disclaiming all intentions to injure each other’s respective
interests. Britain announces Sir Archibald Kerr, veteran diplomat and at present Ambassador at Baghdad, will
replace Sir Hugh Knatchbull-Hugessen in China.

Thousands of Chinese are streaming into Hongkong from Canton. British fortifications are being strengthened and
the Bay is filled with British warships, including the aircraft carrier H.M.S Eagle. The official organ of the Chinese
army published at Hankow states that Mohammedan troops from southern Sinkiang under the leadership of Ma
Chung-ying, have arrived at Lanchow, capital of Mansu province, on their way to join the fighting against Japan.

Spanish government forces take Teruel, called the greatest success achieved thus far and Madrid is the scene of great
rejoicing.

Swiss government officials indicate that the country may withdraw from the League of Nations unless League
officials permit the unrestricted neutrality of Switzerland.

Gen. Erich Ludendorff, Chief of Staff of the German armies during the World War, dies, aged 72.

Dec. 21 . — Harada states that further investigation has established that the Panay aid not fire cannon at Japanese
troops ashore, but he continues to insist there was no machine-gunning by Japanese surface boats, although he
admits there was machine-gunning of fleeing Chinese launches. A split is reported growing between conservative
and radical factions in the Japanese army which is impeding the proper investigation of
the Panay and Ladybird incidents by higher officials. Alley reaches Manila with his “million-dollar world scoop” of
pictures of the bombing of the Panay. He states he was unable to get pictures of the machine-gunning as he had
buried his camera for fear it would be confiscated. He will leave on the China Clipper for the United States
tomorrow. Alf. M. Landon, former presidential candidate, telegraphs Roosevelt pledging “full support” in any move
the President may make in the Far Eastern crisis, stating the whole country should back the President and view the

situation from a non-partisan basis. Roosevelt replies, thanking him for the generous spirit of his telegram and
declaring that the United States rejects a foreign policy of peace at any price. The San Pedro, California area, is
approaching war-time conditions, and visitors, even newsboys, have been prohibited from visiting the warships. A.
R. Attlee, British opposition leader, strongly criticizes Japan for its disregard of international law and accuses the
British government of “drifting about’’. As to the use of colonies for diplomatic bargaining, he declares colonies
should not be treated as mere counters, and points out that besides the “hungry powers”, there are other countries,
like Poland, Czechoslovakia, Austria, and Switzerland, which would have equally valid claims. Foreign Secretary
Anthony Eden replies that without close cooperation with the United States and other non-members of the League,
Britain would be powerless to take severe action against Japan. “Do opposition leaders really think that the League
today with only two great naval powers in it, ourselves and France, have the overwhelming force without which we
should not contemplate action of that sort?” Britain and France sign an agreement pledging close cooperation
between their air forces.

The Spanish government announces it has taken Teruel, ending the threatened starvation blockade of Madrid; an
Italian general was captured and, it is claimed, 24,000 insurgents lost their lives.

Dec. 22 . — Washington officials emphasize the government is still following a policy of independent action and
judgment regarding Far Eastern conditions and that the United States is not contemplating joint action with Britain
or any other power. Alley states in Manila that a motor-launch carrying a Japanese army officer and several men
approached the Panay two hours before the bombing and boarded it, demanding to see the Captain and asking about
conditions down the river, including the position of the enemy. His bearing was stiff and truculent and when the
Captain told him that as a neutral he could not disclose information of a possible military nature to either side, the
Japanese appeared angered and left the ship. A Japanese interim report states that Japanese surface boats were
machine-gunning Chinese on the banks of the river and "there might have been stray bullets flying toward
the Panay “. It also admits that Japanese soldiers boarded the ship after it had been abandoned, but only with friendly
intentions. Reported that Emperor Hirohito has approved the policy providing for a continuation of hostilities until
the Nanking government “reconsiders its anti-Japanese attitude”. Japanese police announce the arrest of 370 persons
on suspicion of participating in pacific and communistic movements including one member of Parliament, chairman
of the executive committee of the Proletarian party; it is believed the arrests were made to divert attention from the
strained international relations, as ordinarily such arrests remain secret for many months. The Mexico correspondent
of the New York Times reports that the United States has taken steps to declare as a proscribed area for airplane
flights the entire California region near the Mexican border between San Diego and Mexicali and that strong secret
bases will be established there. The British Ambassador in Tokyo protests against the violation of Honkong
territorial waters on December 1 1 and asks assurances that British waters be respected. Russia is reported to have
dispatched a battleship, a cruiser, a number of destroyers, and 20 submarines of the Black Sea fleet to Vladivostok.
A reign of terror is reported from Wuhu with executions, looting, and rape the order of the day; an American flag on
a hospital is hauled down and thrown in the river and a mission is ransacked by Japanese soldiers.

Dec. 23 . — The Japanese military announce the formation of a new government in Nanking supplanting the Chiang
Kai-shek regime, under the name of “Autonomous Commission”, with Tao Hsi-shan as chairman. The Commission
issues a statement attacking the “former government” for “leading the Chinese people into indescribable misery
during the past decade by pursuing anti-Japanese and pro-communist policies”. Lieut. -Col. Y. Nishi, army
investigator, admits that the Japanese machine-gunned the Panay boats, but emphasizes Japanese humanitarian
efforts after the mistake was discovered.

Viscount Cranbourne, Under-Secretary for Foreign Affairs, states in the House of Commons that the British
government will take “further measures” if Italy does not cease its anti-British radio propaganda in the Near and
Middle East; Italy is said to be practically giving away radios to the Arabs. He states, too, that the suggestion that
the government stop licenses for the export of arms to Japan would involve certain difficulties, particularly in
connection with the Anglo-Japanese commercial agreement of 1911, and that the League of Nations resolution of
October 6 does not absolve Britain from its treaty obligations.

Dec. 24 . — Secretary of the Navy Claude Swanson releases the report of Capt. J. J. Hughes of the
gunboat Panay sunk by the Japanese in the Yangtze river, which substantiates reports that have already appeared in
the newspapers. The ship flew the ordinary flags and also had large horizontal flags painted on the decks. The attack

lasted over an hour from 1:27 to 2:35 p. m. The ship occupied an open space in the river visible from every side for
several miles. The weather was clear, there was no wind, and visibility was good. Besides bombing the ship, the
attackers also machine-gunned the decks. The Captain was wounded and did not personally see the machine-
gunning of the ship’s boats, but he states this was reported to him; also the subsequent boarding of the ship by
Japanese. He also describes the visit of Lieut. Hashimo Murakami before the bombing. The report of the find-ins of
the Naval Board of Inquiry is also released. It declares that adequate steps were taken at all times to inform the
Japanese fully as to the Panay‘ s movements and that no warning had been received that dangers were likely to be
encountered.

Admiral M. Yonai, Navy Minister, in a press interview, blames “battle-front psychology” and “poor visibility” for
the Panay incident. American federal officials seize letters on four Japanese ships leaving for the Orient for alleged
violation of the postal regulations. A drive against improper American registration of Japanese and other foreign
fishing boats is launched in the United States. The New York Times declares a parallel course between the United
States and Britain would be both sensible and strong and states that self-interest and world peace demand it. “It
would set bounds on dictators and treaty breakers by withholding raw materials and credit without resorting to a
formal plan under the name of sanctions”.

Reported that the occupation of Nanking was accompanied by wholesale murder and looting, the systematic
destruction of Chinese shops and execution of prisoners with machine-guns — ”a record of horror and shame”. The
Japanese take Hangchow, the city capitulating without street-fighting. A gigantic counterfeit plot, apparently
designed not only to make tremendous profits but to destroy China’s financial stability, is uncovered after an
estimated $3,000,000 in 5 and 10-dollar issues of the Central Bank and Farmers Bank were shoved into circulation;
Shanghai police state the distribution depot, where the notes can be obtained at half the face-value, is in Japanese-
controlled Honkew where only Chinese employed by Japanese are allowed to enter. A noticeable defect in the bills
is that the portrait of Sun Yat-sen has a somewhat Japanese cast of countenance.

Dec. 25 . — Hirota reported to have handed Grew a note, approved by the Cabinet and sanctioned by the Emperor,
acknowledging full responsibility for the Panay incident, and declaring that the commander of the flying squadron
and “all others responsible” have been punished “according to law” (details not given). Concerning America’s
request for an apology and indemnity, it is stated that “no words need to be added to what I (Hirota) said in my
aforementioned note of December 14 which said that the Japanese government regrets most profoundly that it
caused damage to a United States man-of-war and other ships and casualties among those aboard, and desires to
present hereby our sincere apologies. . . . The Japanese government will make indemnification for all losses”. The
note goes on the state that the bombing was “entirely due to a mistake” and that the Navy without delay ordered the
exercise of the greatest caution in every area where warships or other vessels of America or any other third power
are present in order to avoid recurrence of a similar mistake even at the sacrifice of strategic advantage in attacking
Chinese troops”. It is announced at Washington that the United States has replied to the Japanese government,
accepting the Japanese apologies, but, after referring to the statement in Japan’s note of the 24th that the attack was
unintentional, the note declares that the government relies on the report of the court of inquiry of the U. S. Navy a
copy of which has been sent to the Japanese government. It also states that "it is the earnest hope of this government
that the action the Japanese government has taken will prove effective toward preventing any further attacks upon,
or unlawful interference by the Japanese authorities or forces with American nationals and property in China”.

The Japanese cross the Yellow river and take Tsinan as a first move toward the occupation of Shantung province.
Two mysterious bomb attacks are made on Soviet offices and citizens in Shanghai and the French Concession today,
bringing the total of such attacks during the past few days to seven; several persons have been severely injured.

Christian services are held in the Church of the Nativity under the protection of British soldiers. Some 30 Arab
terrorists are killed in the hills of Bethlehem, near Nazareth.

Dec. 26 . — Britain is reported to have “temporarily abandoned the tentative plan” to dispatch a part of its
Mediterranean fleet to the Orient.

The rebels drop some 400 shells on Madrid yesterday and today, but only 8 persons are reported killed though some
60 were wounded. Government spokesmen say that the victory at Teruel is a vital one and materially changes the
situation.

Dec. 27 . — Hirota expresses the Japanese government’s gratitude over the United States note of acceptance and the
Japanese press shows elation over the settlement of the incident. The Japanese announce they have occupied Tsinan,
capital of Shantung. The Provisional government at Peking announces a decision to establish the Associated Reserve
Bank of China with a capitalization of $50,000,000 to be subscribed in equal parts by Japanese and Chinese banking
organizations. It will issue inconvertible currency at par with the yen and the Manchukuoan yuan. Passengers in
foreign ships bound for Macao state they saw some 20 Japanese warships gathered at a point 15 miles northeast of
the city, including a number of transports and at least one airplane carrier. A Japanese spokesman in Shanghai
blames the alleged throwing of a hand-grenade on a party of soldiers passing under a bridge to the lack of control of
the situation by the municipal police. Some hours previously it was announced that foreigners returning to the
International Settlement areas north of Soochow Creek will lose their extraterritorial rights in connection with
offenses directed against the Japanese military; embassies and consulates have not been advised.

Dec. 28 . — According to official Chinese quarters, the morale of the troops has been restored by the arrival of strong
reenforcements and new equipment and preparations are being made on all fronts for a grand counter-offensive to be
launched in “a month or two”. The Shanghai police close all bridges over Soochow Creek following a second
grenade attack on Japanese boats passing underneath. A Japanese Embassy spokesman states that the regulations as
to extraterritoriality “apply to the Hongkew and Yangtzepoo districts, which are part of the International Settlement,
as well as to all other Japanese-occupied territory throughout China, including Peking and Tientsin”, and that, “as a
matter of fact, they apply to all Shanghai for foreigners as well as Chinese. . . We do not state, however, they will be
applied, and in the case of foreigners due consideration will be given to international law and the treaties between
Japan and other countries”. The U. S. gunboat Oahu leaves Shanghai for Hohsien to begin salvage operations on the
sunken Panay. The Navy Department announces that four U. S. cruisers will leave San Pedro shortly for Sydney,
Australia, to participate in the celebration of the 150th anniversary of the founding of the Australian
Commonwealth, calling at Honolulu and Pago-Pago enroute; some observers consider the move as evidence of a
British- American naval understanding. President Roosevelt writes the House appropriations committee that while
estimates for present naval construction has been made, “it is possible I may send supplementary estimates for the
construction of a number of ships in addition. . . . World events cause me growing concern. . . I do not refer to any
specific nation or to any specific threat against the United States. The fact is that in the world as a whole many
nations are not only continuing but are enlarging armament programs. I have used every conceivable effort to halt
this trend and to work toward effecting a decrease in armaments. Nevertheless, these are the facts and the United
States must recognize them.” The Ford Motor Company in Japan buys 1,000,000 yen of Japanese “China incident”
bonds, the manager stating that in view of the Company’s business in Japan, the purchase is “natural and logical”.
The Woolworth chain stores have ceased to buy Japanese goods, states an official of the company. The Japanese
government replies to the British protest against the attack on British warships on the Yangtze on December 12, but
the note is not made public. A Japanese army statement, however, declares that a “thick fog” at the time made it
impossible to identify the ships and that “as on December 9 the Japanese Consul-General at Shanghai had requested
all third powers to evacuate their nationals from the scene of hostilities, the Japanese high commander and all his
men did not dream of the presence of any foreign ships in the neighborhood”. The Honkong government is reported
to have forbidden merchantmen to use their radios while in Honkong waters; the order is said to be due to a
suspicion that the Japanese liner, Hasama Mam, stranded near Honkong since the September typhoon, was used as a
Japanese transmitting station. Reported that Japanese troops landed on Wongnam island, 10 miles southwest of
Macao, after a bombardment of the place.

Roumania forms a new government under Octavian Goga, leader of the ultra-nationalist Christian party which is
strongly anti-Semite and has a swastika badge. Goga formed a new cabinet on instructions from King Carol after the
resignation of George Titarescu. The government is in opposition, however, to the Iron Guard, another fascist
organization.

Maurice Ravel, distinguished French composer, dies in Paris, aged 62, as a result of an automobile accident.

Dec. 29 . — General Matsui, commander-in-chief of the Japanese forces in the Nanking and Shanghai areas, states
"there is no hurry to follow up the occupation of Nanking with further advances and that the soldiers should take a
rest; at the same time we want to give the Chinese time to reconsider their attitude because as a nation they are slow
to act. It is necessary to show the real intention of Japan which is not territorial, and how it is sacrificing so much
only for the purpose of establishing peace in the Far East”. Preparatory to evacuating Tsingtao, Chinese troops blow
up factories, mines, wharves, harbor works, and telegraph stations. Increasing daily landing of goods from Japanese
vessels without customs examination is causing foreign government apprehension as to China’s future ability to pay
its debts. Reported that President Roosevelt has ordered rearmament plans forwarded with all possible speed, and it
is expected he will ask Congress for an appropriation of a billion dollars for national defense. The
Washington Star states that the nation will interpret Roosevelt’s move as a reply to the "intolerable affront” of
the Panay sinking. "The United States thus institutes its own guarantees for Japan’s good behavior. It is exactly the
kind of moral suasion that force -worshipping nations and the like-minded people west of Suez will understand”. R.
D. McReynolds, chairman of the House foreign relations committee, appeals in a radio address for an abandonment
of the policy of “confusion and isolation” and declares that while Japan’s apology ends the Panayincident, it does
not end America’s interest in Far Eastern affairs. “Apart from the destruction of life and property, there is the large
question of whether international relations shall be governed by law or violence”, he states, adding that the United
States must “insist on the sanctity of treaties”, “a policy of isolation and withdrawal, while undertaken in the name
of peace, being a policy that encourages war”. An official of the Kresge 5 and 10 cent stores announces that they
have stopped purchases of Japanese goods because customers are boycotting them. A British Embassy spokesman
calls at the Tokyo Foreign Office and states that no one must assume that the Embassy accepts the version of the
Japanese attacks on the Ladybird and the Bee issued by the Japanese military yesterday.

More than 100,000 public service workers of Paris, from street -cleaners to subway operators, declare a strike in
protest against a proposed wage-reduction.

The Irish Free State officially becomes Eire as the new constitution goes into effect making the nation virtually a
sovereign republic. Police are prepared for disorders in view of the small majority approving the constitution.

Dec. 30 . — Chinese blow up the new Tsingtao electric plant, climax of a night of terror. They have also blown up
Japanese-owned coal mines at Nanking, Changking, and Fangtze along the Tsinan -Tsingtao railway before
retreating. Japanese bomb Canton and Shameen in the first intensive raid since September, but the damage is slight.
Lo Peh-hong, prominent Chinese Catholic and chairman of a Shanghai committee for “fostering the return of
normalcy” to China and recently mentioned as the probable new mayor of Shanghai, is assassinated. Reported from
London that the Japanese note in answer to the British protest emphasizes that there is no room for doubt that the
Japanese did not intentionally attack the British ships; signed by Hirota, the note tenders a “profound apology”,
declares that Japan will pay any necessary compensation, that the steps to prevent a recurrence of such an incident
have been taken, and that those responsible will be properly dealt with. Admitted in the Russian press that Russia is
sending arms and munitions to China, but it is stated that the United States, Britain, France, Germany, and Italy are
aiding the Chinese by sending even more war materials. Russia and Japan sign a protocol establishing a temporary
fishing agreement for 1938 as negotiations for a new treaty are still incomplete. Reported that President Roosevelt
has asked for the passage of the Copeland bill providing for the gradual elimination of Japanese and other alien
fishing boats from American waters.

A British government statement declares that the new constitution of Ireland is only partly acceptable to the United
Kingdom and the other dominions, but that it is “prepared to treat it as not effecting any fundamental alteration in
the position of the Irish Free State, henceforth to be described under the new constitution as Eire or Ireland, as a
member of the British Commonwealth of Nations”.

General Franco sends two armies and 200 airplanes to relieve around 1000 rebels besieged in the Teruel Seminary —
the “Alcazar of the Aragon front”. Italian blackshirts legionnaires lead the attack in which it is said some 240,000
men are engaged along a 25-mile front, the “biggest battle since the World War”.

The Paris strike ends following a wage compromise.

Seventeen-year old King Farouk of Egypt dismisses the Cabinet headed by Moustapha El-Nahas Pasha after the
latter had protested against a commission appointed by the King to arbitrate on constitutional points of difference.
The new Prime Minister Mohamed Mahmoud Pasha completes his Cabinet later in the day, representing all parties
except the Wafd which opposes the Anglo-Egyptian treaty of friendship and alliance.

Dec. 31 . — Reported that Britain regards the Japanese apology and explanation as acceptable but will make certain
observations regarding the Japanese assertion that the attack was accidental. Chinese troops march out of Tsingtao
after inflicting terrific damage on Japanese property, and vigilantes, composed of foreign men, take over police
duties and will attempt to maintain order until the Japanese arrive. Chinese reports are to the effect that Russian
submarines have been sent overland and reassembled and are now in the Yangtze river west of Anking. Some
Russian amphibian tanks have also arrived. Portugal protests against the Japanese occupation of Wongnam island,
near Macao. Siam signs a treaty of friendship and commerce with Germany.

A number of democratic and Jewish newspapers in Roumania have been suppressed dining the past few days and a
decree is issued that no Jews may remain in any newspaper office. Reported that Roumania’s contracts with France
and Czechoslovakia for armament supplies have been “temporarily suspended” and that Russia has notified the new
government it will abrogate the 1933 non-aggression pact. Stated in Rome that the new situation in Roumania is
indicative of the “profound transformation which is taking place in the whole Danube basin.”

Jan. 1 . — Shanghai is disturbed by three more hand-grenade attacks on Japanese forces, believed inspired by Chinese
secret societies; the police are practically powerless to deal with the situation which it is feared will play into the
hands of the Japanese militarists. Some 200 Japanese evacuate Wongnam island as a result of the Portuguese protest.
Chinese troops repulse an attempt to land a hundred sailors at Tongkawan, a few miles north of Macao. Japanese
planes again bomb various South China cities. The Mayor of Pittsfield, Massachusetts, bans the showing of the films
of th ePanay incident until officials have censored them; a minister states the pictures are “stupid” and released as
“Big Navy” propaganda.

Jan. 2 . — Reported in Shanghai unofficially that Chiang Kai-shek has rejected Japanese peace overtures
communicated to him through the German Ambassador. Chiang Kai-shek resigns as President of the Executive
Yuan and names Finance Minister H. H. Kung as his successor, resuming his rank as Chairman of the National
Military Affairs Council and Commander-in-Chief of the Chinese armies; various other changes are made to
“increase efficiency”. The Chinese government has granted recognition to the “North China People’s Resistance
War Committee”. The Japanese in Nanking inaugurate a new government for the lower Yangtze river valley, the
“Nanking Autonomous Commission”, which repudiates the “one -party despotism” of Chiang Kai-shek’s
Kuomintang and declares it has been formed “on the will of the people”.

Jan. 3 . — The Japanese spokesman states there is no hurry to occupy Tsingtao as it is of no strategic importance. The
Chinese government orders the closing of all reformatories and the release of the prisoners, most of whom are
political offenders, many of them communists. Shanghai’s $10,000,000 annual opium traffic is resumed after a brief
halt due to the hostilities; some 50 opium hongs will buy opium only from the Japan -controlled supplies in Jehol and
Suiyuan and will also pay $15,000 a month in “protective commissions”, and will furthermore take up $1,500,000
worth of Persian opium now in Formosa awaiting shipment to Shanghai, it is reported.

More than 4000 Italian blackshirts are reported to have arrived on the southern coast of Spain from Morocco and are
being rushed to the Aragon front where heavy fighting continues. Crack leftist regiments are said to have suffered
heavy losses.

The Chamber of Deputies of Egypt votes non-confidence in the new Cabinet, 188 to 17, but the President of the
Chamber declares the meeting illegal. The Senate voted the same way, 83 to 4.

British Zionists meeting in London pass a resolution requesting that the proposed Jewish state in Palestine be
brought within the British Empire.

London begins broadcasting in Arabic to meet the Italian anti-British propaganda in the Near East.

Jan. 4 . — Japanese officials protest to the Shanghai Municipal Council against the recent hand-grenade attacks and
request "the placing of Japanese in controlling positions in the various organs of the Council”, the spokesman
refusing to amplify the statement. They also ask that the Council compel the Chinese Chamber of Commerce, the
Chinese General Labor Union, and other organizations to retract publicly in the newspapers their announced
opposition to the Japanese-sponsored Shanghai Citizens Federation and control their activities which are alleged to
be “consistently anti-Japanese”. Hongkong adopts war time emergency regulations permitting the authorities to
arrest and banish any vagrant without trial and giving police the right to search houses without search warrant,
censor telegrams and letters, and seize buildings “for public purposes”.

Jan. 5 . — The Japanese capture Chufu, birthplace of Confucius, in Shangtung; Duke Kung Teh-chang, 75th lineal
descendant of the sage, was in the city when they took possession. The Japanese virtually take over the International
Radio Station in Shanghai and it is disclosed that a censorship will go into effect which will prevent straight news
dispatches from Shanghai by the normal means; they can impose a censorship because the foreign cable and radio
companies have contracts with the Chinese government which include a censorship clause and the Japanese have
taken over all the functions of the Chinese government in the occupied territory; they claim a censorship is
necessary to prevent the leakage of military information to the Chinese. The Chinese workers have walked out. The
Japanese also control the post office, but it is not believed they are censoring the mails.

Jan. 6 . — Forty Japanese planes raid Kwantung, temporary capital, and do considerable damage. The American
Embassy is reopened in Nanking. Chinese claim their planes recently destroyed six grounded Japanese planes at
Wuhu and sank two Japanese gunboats in the river. The Japanese require the Chinese consulates in Formosa and
Korea to raise the five-striped flag of the Peking Provisional government. The Japanese begin a strict censorship of
all radio and cable messages, into and out of Shanghai. News correspondents will not be informed what portions, if
any, of their dispatches are deleted. The U.S.S. Augusta leaves Shanghai for Manila, but Admiral Yarnell remains;
he will stay aboard the U.S.S. Isabel.

Jan. 7. — Government forces blast the Teruel Seminary, reportedly killing a hundred orphan children; they state they
were unaware of the presence of the children in the rebel stronghold. It is claimed the rebels have been completely
defeated. Stated that Italy is preparing to ship 40,000 more Italian “volunteers” to Spain.

France and Poland declared to have reached an agreement for the migration of some Polish Jews to Madagascar.
Neighbors of Roumania strengthen their frontier guards against an influx of Jews it is anticipated will follow the
establishment of the the fascist Goga government there.

Jan. 8 . — Reported from the astronomical observatory at Johannesburg, South Africa, that on October 30 the world
narrowly escaped annihilation from a collision with an asteroid or small planet which was shooting toward the earth
at an enormous velocity and passed at a distance of only 400,000 miles — ’’the narrowest escape in the entire history
of astronomical observation”.

Three complete medical units, staffed and equipped by the League of Nations, arrive in Honkong for the purpose of
helping China fight epidemics and plagues; they expect to proceed to the interior as soon as possible. Some 400
Formosans are reported to have revolted as a result of a Japanese demand that they go to fight in China; they have
retired into the mountains.

Some 1500 rebels of the Teruel garrison surrender.

Jan. 9 . — Premier Konoye is reported to be seeking an understanding with the Cabinet for a four-year war program in
China.

The fall of Teruel is said to have broken the morale of Franco’s army and wholesale desertions are reported.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary. Philippine Magazine, 35(2), 72-77, 109-114.

News Summary, Philippine Magazine: January 11 - February 12, 1938

News Summary
The Philippines

Jan. 11 . — A group of government auditors headed by Juan D. Quintos submits a report to the National Assembly
sub-committee on utility rate reduction charging the Manila Electric Company with inflating its assets and operating
expenses for the purpose of maintaining excessive rates, and evading payment of taxes. It is also charged that the
Company constructed the Botocan plant without legal authority.

Jan. 12 . — President Manuel L. Quezon leads public officials and prominent citizens in welcoming the statement of
President Roosevelt to the effect that he is contemplating a plan to continue special trade relations between the
United States and the Philippines until 1960, declaring this is a “cause for gratification among our people. It shows
once more the deep regard President Roosevelt has for the welfare and stability of the Philippines even after the
United States has relinquished its sovereignty over this nation. We are very grateful to the President for his policy”.
High Commissioner Paul V. McNutt states the President’s plan is another assurance that America in dealing with the
problem will be fair to all concerned. I do not feel his position has changed since the passage of the Tydings-
McDuffie Act. He indicated then that changes would be made if circumstances pointed to their wisdom”. “Best news
for a long time”, is the statement in trade circles.

Some thousands of farm laborers and tenants in Pampanga who are striking for higher pay and have burned some
fields of sugar cane, are warned by President Quezon that violence will not contribute to the solution of their
problem and will be suppressed.

Archbishop Michael J. O’Doherty states in a Rotary Club address that the Catholic Church here is satisfied with
present relations between church and state and is not looking for special privileges or any kind of political
responsibility.

Jan. 14 . — President Quezon issues an order prohibiting government officials and employees in Mindanao and Sulu
and their wives and immediate relatives from acquiring land or control of other natural resources within the areas of
their jurisdiction. He names Captain Fernando Fores, Chief of the Secret Service, Manila Police, of which he has
been acting head for some time.

High Commissioner Paul V. McNutt in a press conference emphasizes the need of real reciprocity in trade relations
with the United States and, pointing to the opposition of special interests, states he believes any program must be
formulated with a view to its legislatability. He refers to the undesirability of “freezing” the situation by treaty and
states legislation is preferable. He makes a plea for intellectual honesty. Economic independence must come before
political, he reiterates.

Jan. 15 . — President Quezon creates a National Relief Administration, appointing Dr. Jose Fabella as acting head.
The organization will take charge of government relief appropriations, determine needs during public calamities,
take censusses of the unemployed and indigent, etc., and advise appropriate government entities accordingly.

High Commissioner McNutt leaves Manila for an inspection flight to Davao.

Some 150 sit-down strikers in the government quarry at Arayat, Pampanga, are arrested for “coercion” and
“tumultous affray”.

Jan. 17 . — High Commissioner McNutt returns to Manila.

Jan. 18 . — High Commissioner McNutt leaves for Shanghai on the U. S. S. Augusta to confer with Admiral Yarnell
planning to return in a week. President Quezon is reported to have decided that development of Surigao iron

deposits will be undertaken by the government through the National Development Company. Some 50,000,000 tons
of ore are estimated to be available, valued at over P25, 000,000.

Manager Gregorio Anonas of the National Development Company signs contracts for the construction of a
P229.000 plant to manufacture cans for preservation of food stuffs to be established in Santa Mesa.

Jan. 19 . — Former Resident Commissioner, senator, and representative Pedro Guevara dies of heart failure while
arguing a case before the Supreme Court. President Quezon states that Guevara’s death shocked him and that he was
for many years one of his dearest friends, who rendered his country great service. “He was a man with sincere
convictions. He stood his ground regardless of whether or not it affected him adversely politically”. He was 59 years
old; born in Santa Cruz, Laguna, of a prominent family.

Reported from Washington that the United States is now ready to negotiate with the Dutch government for the
establishment of Philippine-East Indies air line.

J. C. Rockwell, President of the Manila Electric Company, declares that his Company has not yet received a copy of
the “so-called report of the so-called auditors” and that the meeting of the Assembly committee and taking action on
this “extraordinary” report in secret sessions is “grossly unfair, cowardly, and malicious. ... If we are favored with a
copy, we shall reply with a statement of the real facts.”

Jan. 20 . — High Commissioner McNutt arrives in Shanghai and makes an extensive tour of the city’s devastated
areas with Admiral Y arnell.

S. S. Hoover reported from Shanghai to be slowly breaking up by officers of the U. S. S. Augusta which passed
within a mile of the place where she grounded.

Philippine Army captures the Pandatao cota after all-day fighting; 15 Moros killed, 4 soldiers wounded.

Jan. 21 . — Learned from authoritative sources that large-scale development on a lease basis of mineral oil resources
of the country will be undertaken shortly by the Standard Oil Company of California if negotiations now in progress
are approved by the Assembly.

Rep. T. O’Malley challenges President Quezon to “speak up now” if he wants immediate independence or “forever
after hold the peace”. “Congress is ready to give the Philippines independence at the drop of a hat, but President
Quezon is strangely silent on the subject now that he knows it is near at hand.”

Dr. Manuel Carreon quoted as doubting feasibility of teaching the subject of national languages in the elementary
and high schools next year because of the difficulty of obtaining teachers.

Jan. 22 . — Philippine and American army maneuvers end, the largest concentration of troops in the Philippines since
1902. Gen. Douglas MacArthur and U. S. Army observers praise the Philippine Army highly and Philippine officers
say the maneuvers by far the most instructive phase of their military careers.

Jan. 24 . — High Commissioner McNutt returns to Manila from Shanghai, the U. S. S. Augusta making a record run
of 39-1/2 hours as a test.

The third and last period of the Assembly opens. President Quezon in a message to the National Assembly, states
that "the just and equitable solution of social problems is the real test of the sufficiency of democracy to meet
present-day conditions of society.... The root of the world-wide discontent among the people, which gave birth to
communism in Russia and has been at the bottom of every revolution of the last 40 years, has been the utter
disregard by governments of the social purpose of property”. He declares that in the past the burdens of taxation
were placed “on the backs of those least able to remonstrate” and that the Philippines has inherited this system from
earlier centuries. “The present system is a source of the greatest injustice from which our people suffer as it rests

most heavily upon the masses and very lightly upon the rich.” He states that the tax burden is equivalent possibly to
P40 per family and that this is borne by millions whose total income is between P100 and P200 a year. He advocates
the reduction or elimination of taxes such as the sales tax, which is not only unjust but harmful to business and
which he would eliminate completely on articles of prime necessity, the abolishing of heavy professional fees on
people just starting in a profession, the reduction of the tax on radio sets to PI. 00 a year “except in very expensive
sets which are luxuries”, the reduction of market and slaughter house fees, these taxes to cover only expenses to
keep up these services, and instead of these taxes, heavier taxes on incomes and inheritances not only to support the
government but to avoid the accumulation of enormous wealth into a few hands. He states we have “talked enough
of social justice . . . We have made a good start in raising wages of government laborers and in abolishing the cedula
tax, but we have not done enough . . . Deeds and not words is what our people want. We dare not disappoint them.”

Jan. 26. — President Quezon in the first press interview since his illness, outlines an 8-point program of legislation
for the current session “which he personally characterizes as “socialistic’ (1) a minimum wage law, wage
minimums to be fixed according to the industry and locality; (2) a tax on sugar centrals graduated downward in
proportion to the share in profits the central allows the farmer; (3) a public land administration and distribution law;
(4) a law authorizing the leasing and development of oil fields by American and Filipino corporations; (5) a revision
of public instruction system; (6) revision of taxation system with a view “to shifting the burden of taxation from the
poor; (7) a 4-year program of public works; (8) and the government’s financial program for 1939 as embodied in the
next budget. President Quezon stresses the “importance of giving social justice to the people, frankly admitting that
his plans are ‘New Dealish’ and are apt to cause people to brand him as communistic.”

The situation in Pampanga is not serious from the point of view of peace and order, he declares, but he considers it
serious as a symptom of what might be expected unless steps are taken to ameliorate conditions. Injustice and poor
wages and not politics are the cause of the trouble.

Secretary of Labor Ramon Torres states that the “government” does not consider strikes illegal and does not seek to
suppress them but to settle them”. He declares the Iloilo strikers’ have presented the following grievances: a wage of
40 centavos on the railway lines and 50 centavos in the mill; 14 hours a day for some men; being forced to buy 2
kilos of sugar every fortnight at 20 centavos a kilo when it can be obtained elsewhere for 12 centavos; being forced
to buy one fish daily at 15 centavos chargeable their wages that can be bought for 10 centavos in the market; being
obliged to buy daily needs from a company store at high prices.

Jose Nava, President of Federacion Obrera de Filipinas, leader of the Iloilo strike, telegraphs President Quezon
protesting against “provocation by the Philippine Army and state police forces led by Governor Tomas Confesor” —
’’giving protection to capitalists who do not comply with the law and supplying them with scabs who work under
government protection”, and “trampling upon the right of the strikers to protest. . . We should like to know what
minimum wage and social justice are those that your Excellency preaches as we are losing our faith in the local
authorities who are spoiling Your Excellency’s great program.”

Rep. O’Malley is quoted as saying that the refusal of President Quezon to “speak up now for immediate
independence is a clear indication he had changed his mind, placing him in the light of a very inconsistent person”.
He declares he will go ahead with his bill to give the Philippines independence without continued trade benefits.

President Quezon sends a cable to Commissioner Quintin Paredes stating that “fortunately for the good name of
America and the welfare of the Filipino people” the attitude revealed in the O’Malley resolution “does not represent
and never has represented the policy of either the executive department of the United States government nor of the
American Congress. By taking the Philippines forcibly both from Spain and from the Filipinos themselves, America
has voluntarily assumed, and it would seem deliberately a moral obligation towards the Filipino people as their
guardian and trustee. This self-imposed obligation . . . has been publicly avowed . . . The economic policy of
America affecting the Philippines which the United States promulgated on its own initiative and responsibility has
created an economic situation here that makes imperative the granting of sufficient time for economic readjustment.

. . before the present trade relations are completely terminated unless the granting of independence is to be made

with utter disregard of the economic and financial consequences with all its implications to the Philippines

However, both as the authorized spokesman for our people and as a Filipino, I shall not place myself in the position
of refusing independence under any and all circumstances if and when it be so decided by the Congress. No self-

respecting people would do otherwise. My own preference, and I think I represent the consensus of opinion in this
country, arrived at after mature deliberation, is that it will be equally in the interests of America and of the
Philippines if independence were to be granted at the end of this or the beginning of next year and at the same time a
trade arrangement between the United States and the Philippines agreed upon substantially in line with the views of
President Roosevelt as recently published in the press.”

President Quezon telegraphs Governor Confesor to remain neutral as the right to strike is recognized by law.

Rep. Crawford is quoted as having said in Congress that Japan “is conquering the backyard of the Philippines” and
demands that President Roosevelt and High Commissioner McNutt exert pressure on the Commonwealth
government for enactment of laws preventing further real estate acquisition in the Philippines by Japanese. “When
Japan moves to acquire and dominate any part of the Philippines it is equivalent to making similar attempt to acquire
and dominate a part of the United States”. Philippines would welcome solution by Congress of the Davao situation,
it is stated in local political circles. It is stated also that the problem should have been solved years ago, but that the
Philippines was not in a position to do so as it could not take independent action.

Lieut. -Col. T. R. Gibson reported to have stated in Baguio address that the Corregidor defenses are strong and
modern and superior to those of Gibraltar.

Jan. 28 . — Auditor General Jaime Hernandez states that income of government in 1937 was P210,072,791 as against
PI 03,502,237 last year, and that even without the oil tax proceeds, the collections about equals such peak years as
1928, 1929, and 1930.

Board of Regents of the University of the Philippines decided upon a thorough overhauling of the institution for
greater efficiency, a general reorganization to go into effect at the end of the next academic year.

Jan. 30. — Lieut. -Col. James B. Ord, U. S. A. assistant to General MacArthur, dies of injuries two hours after a
forced landing of a Philippine Army plane at Baguio. The pilot, Lieut. P. D. Cruz, escaped with minor injuries. The
plane was wrecked. President Quezon states that he is grieved beyond measure and that the country owes Ord an
eternal debt of gratitude. General MacArthur states he was one of the “most brilliant and outstanding soldiers of his
time; his constructive work in the development of the Philippine army was of inestimable value and his loss thereto
is irreparable.”

Jan. 31 . — The strong Bacolod cota is taken by the Army with 6 Moros killed, including several notorious criminals,
and 4 soldiers wounded.

Feb. 1 . — President Quezon in a special message to the Assembly offers a most comprehensive program of public
improvements for the next few years involving an outlay of more than P92,000,000 and including construction of
the Government Center buildings on the Luneta, waterworks and artesian wells, drainage works, hospitals, public
dispensaries, health resorts, national and local roads, flood control works, port works, telegraph, cable, and radio
communications, a bridge at the south of the Pasig, a Manila airport, reclamation of Manila North Port District,
National park roads, townsite improvement at Tagaytay, favorable as a health resort and recreation center. This huge
program would be financed from the oil excise and the sugar processing tax, P85,575,600; from Philippine national
revenues P4,423,200; and from the special port works fund, P2,275,000. President Quezon states that even if oil
excise tax were to be discontinued before 4-year plan is realized, there would be enough money in the Treasury to
finance the project, the expenditures, too, being of a non-recurring nature.

Though train service from Manila to Legaspi is inaugurated. The trip will take from 7:00 a. m. (Paco Station) until
6:30 p. m. The train will include air conditioned coaches and a dining car and comfortable third-class coaches. The
locomotive to be used is an oil burner.

Philippine Army issues, a press release exonerating Lieut. Cruz and stating the air accident which led to death of
Lieut-Col. Ord was “unavoidable”, being caused by a momentarily stalled engine and unfavorable air currents while
flying low.

Bureau of Printing will not be able to print school textbooks this year as recently purchased machinery is not
expected to arrive until next July and its installation may not be completed until early next year.

Feb. 2 — President Quezon recommends to the Assembly Philippine participation in the New York World’s Fair and
in the Golden Gate International Exposition to display Philippine progress and strengthen ties of friendship with
America, stating it is estimated that some P2, 000,000 will be needed to permit the Philippines to put up presentable
exhibits at these exhibitions.

The Assembly utility rates committee releases memorandum of Auditor Quintos charging the Telephone Company,
on the basis of an examination of its annual reports and other available documents, with gross violation of public
utility rules and the provisions of its franchise, and orders the government auditors at its disposal to institute an
investigation immediately.

Secretary Torres rules, that the claim of Manila Electric Company, employees for a refund of the 6% reduction of
their salaries from September, 1932, to January, 1937, has no legal ground and that the laborers have been advised
not to take any drastic action. In the case of laborers of various oil firms in Manila he rules that a minimum wage of
PI. 40 is fair enough and compares favorably with wages paid by other firms, and that the petition for a general
increase of from 5 to 20% can not be met under present circumstances.

Preliminary Bureau of Commerce figures show that total trade of Philippines was P520,573,990 during 1937, as
compared with P475, 148,455 in 1936 and P359, 539,059 in 1935. The 1937 trade was highest since 1929. Exports
totalled P302,522,500, and imports were P218,051,490. The United States took 79.82% of total exports and 53.05%
of total imports came from there.

Feb. 3 — Laborers of the Asiatic, Socony- Vacuum, Associated, and Texas oil companies in Manila went on strike
last night following the adverse decision of the Secretary of Labor on their petition for higher wages. Acting swiftly,
the Department submits the case to the Court of Industrial Relations which has subpoenaed all parties for a hearing
tomorrow. Gasoline delivery is at a stand-still and unless the strike is settled in the next few days, Manila will be out
of gasoline. President Quezon issues a statement at one o’ clock in the morning saying the strike is “most unwise
and untimely. In view of the fact that the use of gasoline is essential for the transportation services of the
community, I warn the strikers against any act on their part that may tend to interfere with the movement of the
supply of gasoline.”

President Quezon orders the suspension of Provincial Fiscal M. Blanco, and assistant Fiscal Debuque of Iloilo for
dereliction of duty, and also P. Abordo, Commander of the State Police unit at Janiuay for abuse of authority. A
striker, “found in possession of a bolo”, was kept in detention for several days and at times manacled, without court
action of any kind. The report of the Fiscal that a complaint made was without merit was subsequently found untrue
by Malacanan investigators.

President Quezon issues a proclamation calling upon “all the people residing in the Philippines, both national and
foreign” to abstain from all public demonstrations in favor of or against parties engaged in the armed conflicts in
Spain and China, “or to form associations for the purpose of creating public sentiment in favor of or against any of
the contending parties” declaring the Commonwealth should avoid any possible cause of embarrassment to the
United States in its foreign relations and that the ’’Filipino people are the friends of the Spanish people and of the
Chinese and Japanese peoples”.

President Quezon bestows on the late Lieut. -Col. Ord posthumous honor in the form of the Distinguished Service
Star, P. A., for "services of extraordinary value to the Commonwealth of the Philippines in a position of major
responsibility.”

Thomas Arden, British business man on tour of the Orient states that more articles of luxury and wearing apparel are
sold in Manila than ’’probably in any other place in the Orient or Far East.”

Feb. 4 — President Quezon sends Assembly a special message recommending creation of two more positions on the
Court of Industrial Relations bench.

Feb. 5 — A. D. Paguia, leader of the striking gasoline company workers, and representatives of the companies
reached an agreement before the Court of Industrial Relations that the strikers would go back to work at 1 :00 this
afternoon pending final adjudication of their demands for higher wages. The strikers stated they have agreed to
return to work “on the reasonable and just request of Judge Zulueta. We have agreed in order to avoid jeopardizing
the welfare of . . . fellow citizens . . . workers on transportation companies and public utilities . . . who . . as poor as
ourselves . . . might lose their jobs because of the scarcity of gasoline . . . We believe we could win our strike
without violence . . . without government intervention. . . ” Paguia states that government’s minimum wage should
not be made the maximum wage, and that it should not be presumed a laborer can not demand a higher wage
because he is paid the minimum wage of PI. 25 or a little more. He points out that the companies are making
enormous profits. Some 2640 car inspectors, and motor men of the Manila Electric Company, who planned a
sympathy strike in support of the gasoline workers were persuaded to abandon the idea. President Quezon says he is
happy over the decision of the strikers to return to work. Previously he sent a memorandum to the Secretary of
Labor and Mayor Juan Posadas stating that if the strikers should refuse to go back to work pending the decision of
the Court, others who want to do the work of the strikers should be given all necessary protection against
interference on the part of the strikers . . . “Labor is receiving all possible help from the government. . . . and the
President expected labor in general and labor leaders in particular to cooperate with him in carrying out his social
justice program without embarrassment. These strikes, when there is a court that can hear and determine the reasons
that cause them, are wholly unnecessary and unjustified. . . .”

Vice-President Sergio Osmena, in his capacity of Secretary of Public Instruction states in a letter to Assemblyman
N. Romualdez that under the constitutional principle of separation of church and state, “the government is not called
upon to promote actively religious instruction but merely to provide the necessary facilities so that the instruction
may be available under certain conditions ... It is the policy of this department to maintain without changes the
present regulations and practices which are deemed of fundamental character relative to religious instruction in the
public schools.”

Feb. 6. — Filipino Veterans’ Association, about 1000 delegates present, endorses trip of General Emilio Aguinaldo to
the United States before the end of the year to ask the American government for immediate and complete
independence, expenses to be borne by the General and through voluntary contributions. A resolution is passed for
independence in February 4, 1939 or 1940, with continuation of trade preferences for at least 10 years or up to 1960
as proposed by Roosevelt if possible, or else without. Tagalog is adopted as the official language of the convention
and General Aguinaldo is re-elected President.

President Quezon sends to the Assembly the budget for 1939 which except for elimination of some non-recurring
items is the same as that for 1938, stating that at a later date he may submit such modifications as may be found
necessary. Making allowance for a possible decrease in income from the sales tax and from adverse effects of
unsettled conditions in Far East, he states that the total estimated ordinary income for 1939 accruing to the general
fund has been placed at P79,956,900 or PI, 188, 800 less than the total estimated for 1938. The total budget calls for
P76.403, 8 10,400 for ordinary expenditures.

Feb. 7. — In a conference with the two Assemblymen for Manila, Mayor Posadas, and members of the Municipal
Board, President Quezon outlines a 3-year building program for city public works and schools, calling for
appropriation of P4,000,000 of which P3, 000,000 will come from the national government for public works and
sanitation, and P5,000,000 for school buildings to come from funds to be provided by special legislation.

Bureau of Public Works has completed plans for proposed North Harbor plans for reclaiming part of the Bay,
construction of a wharf, new building areas, government warehouses, etc. The project would cost P17,000,000 and
would take 16 years to complete.

While laborers showed reluctance to go back to work but were persuaded by their leaders to do so. Judge Zulueta
orders four Manila gasoline and oil companies to surrender to the Court within 48 hours certified copies of their

books of account from 1930 to 1937 for audit and examination. Counsel for the companies says that reconsideration
of the order will be sought. He states that though the companies believe in arbitration of labor disputes, the order
goes beyond limits of arbitration. It would be unwise to expose the records of the respondents engaged in the same
business, and “we do not subscribe to the method of fixing wages from the employer’s business return. . . The
laborer should be given a fair wage regardless of whether the employer gains or loses.

Secretary Torres in a letter to President Quezon, reporting on the cause of the strike of gasoline company laborers,
states that “to entertain petitions for too high a minimum wage would disrupt the balance of wage levels and create a
privileged group of laborers which would foster discontent in lower wage groups. ... If gasoline agencies’ profits
are too big, the logical step is to force them to lower their prices ... or to impose new and higher taxes . . .”

Three-day centennial celebration of birthday of Father Jose A. Burgos begins today.

Feb. 8 . — Assemblyman Romualdez, states that he and 62 other members of the Assembly did not ask for
“compulsory religious instruction in the public schools”, but only that measures be taken or “to make effective the
religious instruction authorized by law”. He offered religious instruction as the solution to the present labor-capital
conflicts as religion teaches "the masters to be just and kind to their servants and laborers and the servants and
laborers to be kind to their masters.”

Secretary Torres refers the Manila Electric Company employees’ demand for alleged back salary to the Court of
Industrial Relations.

Feb. 10 . — High Commissioner McNutt tells the press that he expects the Joint Preparatory Committee will report a
program conforming with President Roosevelt’s plan and predicts that a middle ground will be found as regards
export taxes. He says he is not appointing any one to act in his place as he will continue performing his duties while
away. Mrs. McNutt and daughter will remain in Manila.

President Quezon sends a special message to Assembly urging it to ratify the London international sugar agreement,
already approved by Congress.

Judge Zulueta suspends hearing on gasoline companies case to give both sides an opportunity to come to an
amicable settlement and also suspends his order directing the companies to submit their books for audit.

Hemp producers and exporters approve a plan in principle to limit abaca exportation to 1,100,000 bales a year as
long as price for J-2 is less than P12.00 a picul and K less than P10.00. H. T. Fox of Smith, Bell & Company,
opposed plan as limitation would prepare way for other fibers to gain control of market, and instead urged
government aid in improvement of abaca in Leyte, Samar, and Bicol.

Regents of University of the Philippines decide to send pensionados to the United States to specialize on
aeronautics. Faculty members of the College of Engineering and Army officers will be given preference.

Feb. 11 . — Marines guarded the Hawaii Clipper from the time it landed until it departed early this morning with
High Commissioner McNutt aboard and it is understood similar guard will be furnished at Guam, Wake, Midway,
and Honolulu. He was guest at the Rotary Club luncheon yesterday and received an ovation. He tells newsmen just
before boarding the plane. “It is true that President Quezon and myself held a final conference yesterday afternoon
on my report to President Roosevelt. I can not reveal the details but we agreed on the major points and we
understood each other perfectly.” President Quezon said goodbye to the High Commissioner a few minutes before
the latter left Manila for Cavite.

President Quezon in a special message asks Assembly to increase judges of Intermediate Court of Appeals from 1 1
to 15 to enable the Court to cope with its work.

A resumption of the strike of the gasoline company laborers threatens as efforts of Judge Zulueta failed to bring the
two sides to terms. A laborer states before the Court of Industrial Relations that his daily wage had been P1.50 but
that it was reduced to PI. 40 when the 8-hour law was enforced. Company officials contended that PI. 40 a day is a
reasonable wage, but that it is up to the Court to say what a reasonable wage is and that they will abide by the
decision. However, they refused to accept the Judge’s proposal for a 10% increase in wages under PI. 99 a 10-
centavo increase of wages over P2.00 unless he would make this his definite decision. Judge Zulueta thereupon
orders an immediate audit of the books of the four companies, denying a petition for reconsideration.

Manila Electric Company officials appearing before Court of Industrial Relations deny a promise was ever made to
return the amount of the wage deduction. Employees had simply been notified of the reduction which was made in
compliance with an order from New York. Judge Zulueta is said to have prevented a walkout by promising the
laborers they would get justice.

Judge Zandueta decides Mindoro Sugar Estate case, awarding the government 18,285 hectares and the P625.732
already paid by the Estate, and the company, virtually owned by Archbishop of Manila, 1024 hectares for the
payment, this area containing all or nearly all of the improvements made on the estate since the purchase of the land
from the government in 1910. The decision follows efforts of Secretary Eulogio Rodriguez of Agriculture and
National Resources to confiscate large portions of public domain sold to purchasers who have failed to meet their
obligations to the government. General Aguinaldo whose hacienda was likewise confiscated has repeatedly attacked
the Secretary for alleged partially to the Archbishop.

Philippine National Bank directors approve petition of sugar planters of Binalbagan Central for a 65% participation
in the sugar milled.

Assemblyman F. Buencamino declares that a fair distribution of profits between sugar central owners, planters, and
laborers could best be reached by voluntary agreement under government leadership without compulsion of the
proposed law, about which there are practical, legal and constitutional difficulties. He emphasized he believed
wages should and could be increased.

Feb. 12 . — Ten prisoners, including 4 involved in Hill murder case, broke out of Cabanatuan jail, taking 7 shotguns
and one Springfield rifle. The warden and 5 guards have been suspended.

Secretary of Justice Jose Yulo rules that Court of Industrial Relations is “really court with summary jurisdiction.”

The gasoline companies file a petition for certiorari to test right of Court of Industrial Relations to require them to
submit their books for examination. They have not said they can not pay higher wages and will pay higher wages if
ordered to do so by the Court, but will not take responsibility for doing so because of the probable repercussions on
local industry in general as their scale of pay is already above what is paid both in other industries as well as in the
government.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary : The Philippines. Philippine Magazine, 35(3), 121-125.

News Summary, Philippine Magazine: February 14 - March 13, 1938

News Summary
The Philippines

Feb. 14 . — President Manuel L. Quezon asks the resignation of provincial Fiscal Manuel Blanco of Iloilo, and orders
the dismissal of Assistant Fiscal Debuque, chief of police Abordo of Janiuay, and Secret Service Agent Adelantar,
for abuse of authority in connection with the maltreatment of a prisoner arrested in connection with the strike in
Janiuay and Barotac Nuevo centrals.

Feb. 15 . — In a letter to Secretary of the Interior Elpidio Quirino President Quezon states that Governor Tomas
Confesor of Iloilo allowed himself to become unduly excited by the Iloilo strikes and that the mobilization of
constabulary and state police in several municipalities was unnecessary and ill advised as the right to strike has not
been declared illegal either by the Constitution or any act of the Legislature. He cautions against the use of armed
forces unnecessarily as creating the impression the government is acting on behalf of one or the other side.

Secretary of Public Works Miguel Cuenco appoints Capt. Alden Crawford, U. S. Army, acting Director of
Aeronautics.

Major J. P. Guido is named acting chief of the Division of Investigation, Department of Justice.

Feb. 17 . — President Quezon tells 200 labor leaders at a Malacanan luncheon that social justice does not and can not
mean partiality either toward labor or capital. “My heart is wholly with the working class, but my head is not. As
head of the government I have to look not only after the welfare of labor but that of the whole Commonwealth.”
Regarding a resolution favoring his reelection, passed by the labor conference, he states that with his term of 6 years
he will have done all he can humanly do for the Commonwealth. He defended Secretary Ramon Torres against
charges that he was pro-capitalist.

Guia Balmori, daughter of Joaquin Balmori, is crowned Miss Philippines for 1938.

Feb. 18 . — In an after-luncheon talk before Governors, Assemblymen, and Cabinet members at Malacanan, President
Quezon asks for cooperation and states those who do not agree with his policies should join the opposition to which
they ought to belong. He declares that while he was neutral in the municipal and provincial elections, he would
interest himself in the elections to the Assembly as he did not want an antagonistic legislature. As to the current
dispute between governors and assemblymen for priority, he states that governors will be upheld in provincial
matters, assemblymen with respect to national matters. Vice-President Sergio Osmena seconds the President’s plea
for unity, stating that only by cooperation can the political ambitions of the people be realized; past differences
between him and President Quezon, he says, were over procedure and not aims.

Bids are reported to have been called for the construction of a 22-room hotel at Tagaytay to be the first of a chain of
provincial hotels built by Manila Railroad and operated by the Manila Hotel. The Tagaytay Hotel will cost between
PIOO.OOO and P120.000 and will be finished in about 8 months. It is understood the government is prepared to spend
at least Pl.OOO.OOO on a hotel building program. Hotels will be built in Legaspi, Pagsanjan, and Los Banos, all to be
finished this year, if possible, and a larger hotel will be built in Baguio next year. The one in Legaspi will have 40
rooms. The Assembly recently appropriated PIOO.OOO for a Philippine Tourist Bureau.

Feb. 21 . — Former Senator Hadji Butu dies after an illness of several months. Before the American administration he
was Secretary of State to Sultan Jamalul Kiram.

Feb. 24 . — Supreme Court reverses the decisions of the Court of First Instance and the Court of Appeals in the
Cuevo-Barredo case, ordering the contractor to indemnify the mother of a worker who was drowned in the
performance of his duties. The case came to national notice when President Quezon denounced the first decisions,
not knowing it had been appealed, as contrary to the spirit of the law and smacking of 16th century justice.

Judge Francisco Zulueta orders the four Manila gasoline companies involved in the recent strike to restore the
salaries and wages of their workers to what they were before the enforcement of the 8 -hour labor law and fixes the
minimum wage as PI. 50 a day.

University of the Philippines’ Board of Citizens chooses Dr. Pedro T. Lantin, noted for his work on typhoid therapy,
and Dr. Victor Seville, eye, ear, nose, and throat specialist, as the “two most distinguished alumni” for 1937-38.

Feb. 25 . — President Quezon sends message to the Assembly asking for an enabling act permitting the government to
enter into a contract with the Socony- Vacuum Oil Company for the exploration and development of Philippine oil
fields.

Political circles in Manila wish to know the identity of the Filipino officials referred to in Washington reports as
stating that the Commonwealth government would probably react very favorably to any proposal postponing
independence. Floor Leader Jose Ozamis says, “There is no understanding to that effect here”. Assemblyman
Maximo Kalaw states such a plan would be premature. “We have 8 more years to go and nobody can tell what will
happen during that time. If we were in the 8th year now and with the Oriental situation as it is, the launching of such
a plan would be justifiable”.

Feb. 27 . — The light cruisers Trenton, Milwaukee , and Memphis arrive in Manila Bay from Singapore; together with
the vessels of the U. S. Asiatic Fleet now here, the present makes the largest naval concentration in the Philippines
since the Battle of Manila Bay in 1898.

Feb. 28 . — Provincial Governors, in convention in Manila, adopt a resolution endorsing the proposal to amend the
Constitution to permit the reelection of President Quezon.

Reported that the Bureau of Internal Revenue has started action to collect P795.450 in alleged unpaid taxes from the
Manila Electric Company.

March 1 . — The last of the ten Cabanatuan jail breakers surrenders to the authorities after a constabulary and police
hunt that covered several provinces.

March 2 . — The Assembly ratifies the London Sugar Agreement of May 6, 1937, the first treaty to be laid before the
body for concurrence. The Philippines was represented by a delegate. Assemblyman Felipe Buencamino, who
formed part of the United States delegation.

Assemblyman Hilario Abellana of Cebu advocates indefinite postponement of the withdrawal of American forces
from the Philippines, stating that if necessary independence should also be postponed because of the disturbed Far
Eastern situation.

March 3 . — President Quezon at a press conference declines to comment on the newspaper reports of a move in
Washington to change the transition period laid down in the Tydings-McDuffie Act, stating that he has received no
official reports of such a proposal, but that if and when his opinion is sought by President Roosevelt he would be
glad to give it. He announces a plan to revive the old Council of State as an advisory body, to include besides the
Speaker and the Floor Leader of the Assembly, also, on occasion, chairmen of Assembly committees, and also the
Chairmen of various government councils.

Judge Zulueta fixes the minimum wages in the Santos-Lopez Sugar Central and the Philippine Starch and Sugar
Company, Iloilo, at P1.00 for ordinary laborers and P1.50 for machinists.

March 4 . — President Quezon nominated former Senator Jose Generoso to the recently enlarged Court of Industrial
Relations.

Reported that there is opposition among assemblymen against the revival of the Council of State as it would tend to
make the Assembly a mere ratifying body.

University of the Philippines Regents approve the 1938 budget of Pl.693,437 and also restore salaries to the 1932
level, when they were cut 15%. They also approve the transfer of the Northern Luzon Junior College from Vigan to
Baguio.

March 5 . — The International Stock Exchange of Manila discontinues the “pegging” system adopted last September,
and general irregularity features the trading.

March 7. — The finding of broken airplane parts on the beach near Calauag, Tayabas, is believed to indicate that the
Philippine Aerial Taxi Company’s Bellanca plane, piloted by Bert Hall and missing since February 28, when the
plane left Manila for Paracale, probably crashed at sea.

March 8 . — The Assembly Commission on Appointments approves various appointments, including that of Judge
Generoso.

March 9 . — An Assembly caucus approves in principle the proposal to revive the Council of State.

Reported that Secretary of Agriculture Eulogio Rodriguez disapproves of the proposal of abaca producers to enact a
law limiting exports, both because the Philippines no longer has a monopoly and because other fibers would be
substituted in the world market.

March 10 . — An Italian goodwill mission to Japan passes through Manila and calls on President Quezon.
Ambassador Paulucci, head of the mission, tells the press that Japan’s campaign in China is justified.

March 11 . — President Quezon appoints Assemblyman Sultan Ombra Amilbangsa as Governor of Sulu, the first
Mohammedan to be given the position. He has been instructed to “dissociate himself from any political or factional
group in his province.”

March 13. — Mrs. C. M. Cotterman dies, aged 72.

The United States

Feb. 13 . — It is understood by United Press that President Franklin D. Roosevelt believes the present time
unfavorable for a naval limitation conference. A high administration official hints that the United States may soon
assume the lead in what would be the greatest naval race in history. Rep. Tinkham of Massachusetts states: “Every
day brings the United States nearer to a war with Japan as planned by Britain to further British interests. Britain has
forced an imperialistic policy on the United States.”

Rear-Admiral J. C. Townsend, commander of the three American cruisers participating in the inauguration of the
Singapore naval base, states that the presence of the ships is an indication of Anglo-American amity but that he does
not think it should be given too much international significance.

Rear Admiral C. H. Woodward states that United States must be prepared against “gangster dictators.”

Feb. 14. — Sen. W. H. King introduces resolution providing that Congress instruct the President to call international
arms conference, but congressional leaders state that a conference at this time would be futile, and Sen. K. Pittman
states that calling it now would indicate weakness on the part of the United States. Rep. H. Fish, New York
Republican, advocates that Japan be given naval parity. He says that United States has blocked a naval conferences
with Japan and while Japan expressed a willingness to give up battleships and airplane carriers, the United States
refused and is leading a race for naval supremacy although figures show it is already 50% larger than Japan’s. The
administration is reported aroused by Fish’s statements, called “shameless politics” which his own party would not

endorse if it were in power. Parliamentary means may be taken to discourage such irresponsible statements
regarding the nation’s foreign policy in Congress. Newspapers generally condemn Japan’s secrecy. “It looks like a
naval race. Too bad! But we have got money to stay in such a race longer than Japan. We had better do it. . . What
we need is a navy twice as strong as Japan’s”, states the New York News. Sen. G. P. Nye states “We are as
definitely near engaging in a foreign war tonight as we were 30 days before declaring war against Germany. It has
been pretty well established we could not beat Japan at present. May be we could if we spent a number of years, but
what would we win?”

The Senate passes the new Farm bill establishing drastic government control of production and marketing of cotton,
wheat, corn, tobacco, and rice.

Admiral C. T. Grayson, Chairman of American Red Cross and physician to Presidents Theodore Roosevelt, Taft,
and Wilson, dies, aged 59.

Feb. 15 . — President Roosevelt signs the Farm Act, second major objective of his legislative program. The first was
the Housing Act.

President Roosevelt tells the press the United States must consider the possibility it might be faced by war on both
sides.

Abandoning a 13 -year old policy, the Navy transfers all warship construction data to a secret file “in the interest of
public welfare”.

Six U. S. army "flying fortresses” leave Langley Field, Va., for good will flight to Buenos Aires.

The Dollar Company, San Francisco, announces that curtailed schedule provides for average 3 monthly sailings
from San Francisco, 2 for Manila and one around the world. Shanghai is eliminated as a port of call.

Feb. 16 . — High Commissioner Paul V. McNutt arrives in San Francisco. He praised Rear Admiral Harry Yarnell,
asserting he is greatly responsible for keeping the United States out of war. Dismissing reports of his supposed
political aspirations, he says the “domestic political situation is farthest from my mind at present. I still have a job to
do”.

Rep. B. N. Scott, at continuation of hearings on the Vinson bill, warns the House naval committee of danger of the
fascist German -Italian-Japanese alliance, which is already spreading propaganda in South America. Rep. R. O.
Brewster states that 20% increase in navy is unnecessary because of “imminent abandonment” of the Philippines
which has changed the entire situation since 1930 when the Washington and London treaties were negotiated. Rep.
F. C. Knifnn states he is preparing an amendment excluding the Philippines from America’s naval frontier.

Some 60 prominent persons, including former Secretary of State H. L. Stimson, send a petition to President
Roosevelt requesting an amendment to the Neutrality Law to make it inapplicable to Spain as the law now deprives
the government of Spain of internationally lawful aid.

Feb. 17 . — Army authorities said to be unusually active in hunting alien spies intent on obtaining secret plans for
construction of American war machines. Most of the spies will be quietly deported to avoid international tension
resulting from trials.

Sen. R. S. Copeland introduces an amendment to Merchant Marine Act of 1936 to permit Filipinos residing in the
United States to serve on American ships.

Reported United States and Japan have concluded a fisheries agreement under which Japanese will have right to fish
in Alaska area but will discontinue operations considered destructive to fishing industry. No announcement has been
made.

Feb. 18 . — President Roosevelt states in press conference that inflation or further dollar devaluation will not be
considered in combatting the current depression. His policies will seek a moderate rise in general price level
especially as regards raw materials and highly competitive finished goods that have registered decreases, and a
better balance between competitive and administered prices.

President Roosevelt nominates Henry L. Stimson and Michael Doyle, a well-known lawyer to be members of the
Permanent Court of International Justice at the Hague.

Under Secretary of State Sumner Welles states he knows nothing about Buenos Aires reports of a proposal of certain
Latin-American countries for a Pan-American defense plan against aggression from Europe or Asia, although he
states the United States is cooperating with other American republics in the solution of various military and naval
problems. Five U. S. Army bombers arrive at Buenos Aires, completing their 6,000-mile flight in 34 hours, 15
minutes, including 6 hours’ stop at Lima, Peru. The sixth plane is delayed at Lima because of a damaged propeller.

Sen. King states that “Filipinos seem unwise and almost foolhardy” to ask for independence now but that as they
want it they should have it and that he will introduce a bill within 30 days advancing the independence date but
continuing preferential trade relations. He states he will not wait for report of the Joint Preparatory Committee as he
has not sufficient confidence in it.

War Department announces bids for construction of $500,000 mansion for U. S. High Commissioner in Manila and
a $250,000 summer establishment in Baguio, will be opened on March 15, to be completed during 1938.

Feb. 19 . — High Commissioner McNutt, who was tumultuously welcomed in Indianapolis before Indiana Democratic
Editorial Association, emphasizes seriousness of Far Eastern situation and declares that American withdrawal from
Orient would result in continuation of conflict there for another century. There can be no formidable opposition
from British, French, or Dutch, and United States is a vital factor. Removal of American influence would so upset
balance of power that "the day of our race in the East will be over”. “Through a process of progressive democracy,
America might bring peace to world”. He says a “very fine relationship exists” between the United States and
Philippines, and “I, personally, am very fond of President Quezon.” He states economic problems must be solved
before other problems can be successfully met and that United States must reshape its course to give Filipino people
a more equitable financial and economic relationship. Earlier, the editorial association endorsed a “McNutt for
President” boom, but McNutt declined to disclose whether he would seek presidency. He emphasized he was not
called to Washington but planned to discuss number of things with President Roosevelt. “I am not here on political
mission and will remain in Philippines as long as I am needed there.”

B. M. Gancy urges House naval affairs committee not to relinquish military and naval bases in Philippines “because
sooner or later America will have to go to war with Japan”, and such bases would be among most valuable assets.
He states also that every effort should be made to build up an efficient, modern, and mobile Philippine Army “to
conserve independence and protect the people from slaughter.”

Alaska Delegate A. J. Dimond radiocasts an appeal to Congress to prevent further Japanese encroachments in
Alaskan fishing waters, warning the situation may lead to “armed conflict”.

Feb. 20. — W. E. Dodd, until recently Ambassador to Germany, testifies before the House of foreign affairs
committee as to plans of empire of Germany and Italy. A committee member quoted Dodd as saying he had seen
maps revealing that Germany desires Netherlands, Switzerland, Czechoslovakia, plus nazification of Austria and the
Balkan states, and that Italy wants Spain, Egypt, and Palestine.

Feb. 21 . — Navy Department announces that annual maneuvers will range westward to Hawaii and Midway and
southward from the Aleutians to Samoa.

Feb. 22 . — Reported that official circles in Washington indicate that the British policy with respect to Italy and
Germany may lead to further United States isolation and that British recognition of Ethiopia and extending credits to

Italy for exploitation of the country would be a serious blow to the sanctity of treaties. Some said it would mean a
British “let-down” of the United States for the second time.

Five U. S. Army bombers reach Santiago, Chile, after a 5-hour flight from Buenos Aires, on their way back to the
United States. The sixth "flying fortress” was detained at Buenos Aires for minor repairs.

Secretary of the Interior Harold L. Ickes, in the first of an international radio series entitled “America Speaks”,
relayed to England and broadcast from there, declares that totalitarianism in any form is alien to the spirit of
English-speaking people and that democracy can not live in the same country with fascism or communism.

The American Institute of Public Opinion reports results of an interview with representative groups: 76 % of the
American people oppose immediate independence for the Philippines because of the Japanese threat, the value of the
Philippines as a naval base, and belief that the Filipinos are not yet ready for it.

Feb. 23 . — Senator Minton states that the presentation of the McNutt reception as intended to announce a bid for the
presidency sprang from the fertile minds of newspaper writers. “Although a good many of us regard him as the
logical choice for presidential nomination, our political efforts on his behalf will come later.” High Commissioner
McNutt himself states, he is not a candidate for any public office and that he is giving his entire time, energy, and
thought to American affairs in the Philippines. He stresses the absolute necessity of amending the economic
provisions of the Tydings-McDuffie Act, stating that failure to do so would be “economic murder”. The Philippines
should be ready to meet all "internal and external” problems before obtaining complete independence, he says. He
pays tribute to the new Philippine government, saying his relations with Filipino officials have been “a real
pleasure” — ”just as pleasant as back in Indiana”.

Reported from Seattle that the Philippine government has ordered 9 planes for the Philippine Army.

Joe Louis, heavy-weight champion of the world, in New York knocks out Nathan Mann in the 3rd round.

Seymour Parker Gilbert, a partner of J. P. Morgan & Company since 1931 and considered one of the greatest
financial experts since Alexander Hamilton, dies, aged 45. He was Under-Secretary of the U. S. Treasury 1921-23
and Agent-General for reparations payments in Germany 1924-30.

Feb. 24 . — High Commissioner McNutt greets 3,141 men and women in a “how-do-you-do-hand-shake-and-smile
reception” in a “new kind of political debut, smacking of Hollywood”, according to the Associated Press.

High Commissioner McNutt states after an interview with President Roosevelt that the President is apparently very
well satisfied with progress of events in the Philippines, and that he seemed extremely concerned regarding the
Philippines, especially as to the present attitude of the Filipino people. McNutt is reported to be very enthusiastic
about the future of the Islands. The Commonwealth has been successful and the people and officials have shown a
high ability in self-government. The Philippine Army has made notable progress “but it is a little too early to say
how efficient it will be from an absolute national viewpoint”. He states he believes the people are not at present in
favor of advancement of the date of independence because of the general situation. As to economic development of
the Islands, “the surface has only been scratched”.

Feb. 25 . — The United Press reports that President Roosevelt may ask for a reconsideration of Philippine
independence because of the Oriental crisis.

High Commissioner McNutt tells the press that “the four horsemen of murder, loot, rape, and destruction are riding
the Orient”, and it is reported he is likely to suggest United States cooperation in the development of Manila as a Far
Eastern trade clearing house and gateway to the East Indies and in the possibility of interesting Shanghai business
men to transfer their activities to Manila. Commercial trans-Pacific flying is reducing Manila’s former geographical
difficulties.

The Associated Press reports that Filipino officials in Washington say that the Commonwealth government would
probably “react very favorably” to any proposal postponing independence because of the disturbed conditions in the
Far East.

Members of the Joint Preparatory Committee are reported deadlocked over the manner in which export taxes would
be graduated upward. An American official states that the Filipino members are “reaching for the moon and hoping
to grab off a couple of stars”.

Sen. R. M. LaFollette introduces a resolution calling for a constitutional amendment requiring a referendum in case
of war.

Feb. 26 . — High Commissioner McNutt has a second conference with the President, lasting two hours. He is reported
as having reiterated his doubts as to the wisdom of any change in the independence date and as having urged
reconsideration of the whole question and an approach to it from the viewpoint of the Oriental crisis. He tells the
press it is unavoidable that the Philippine problem is “related in many ways with the situation in China”. He states
the President has an “amazing command of the facts and a broad, sympathetic interest in the Philippines, and that he
expressed particular interest in the progress of the Philippine Army.

Feb. 27 . — Reported that the War Department has completed plans for mobilizing 1,250,000 men in 4 months and for
transforming 10,000 industrial plants into war munitions and war equipment works. In the meantime, 300,000
regulars and reserves would serve as shock troops.

Sen. R. R. Reynolds proposes that Britain cede Bermuda, Nasau, and Nova Scotia to the United States as part
payment of World War debts.

Feb. 28 . — Reported that any proposal to extend the transition period to Philippine independence would encounter
vigorous opposition in Congress.

The Supreme Court in a case involving a Milwaukee firm voids a federal injunction against picketing by strikers,
holding that the Norns-La Guardia Act prohibits such injunctions.

March 2 . — The House naval affairs committee overwhelmingly endorses President Roosevelt’s national defense
policy and urges that naval construction be pushed at the discretion of the President.

“Reliable sources” state that members of the Joint Preparatory Committee have agreed to abide by official advice to
delay completion of their report until “a more suitable time” — after Congress has adjourned. Members have
indicated the report will recommend modification of the Tydings-McDuffie Act.

March 5 . — American and Filipino quarters in Washington are said to be predominantly opposed to the suggestion
that the Filipino members of the Joint Committee submit a minority report on the export tax issue. High
administration officials favor presenting a unanimous report so that their recommendations may be presented to
Congress in a unified form and so as to avoid the development of unsolved questions into a Filipino -versus-
American issue. It is pointed out that the administration’s new tentative policy toward the Philippines indicates the
advisability of avoiding all appearance of controversy.

March 6 . — A U. S. Coast Guard cutter arrives at Canton island with a field party and settlers. Last Thursday,
President Roosevelt issued an executive order directing the Secretary of the Interior to take control of Canton and
Enderbury islands in the Phoenix group, basing his claim on their discovery by American whalers, although Britain
also claims sovereignty. Last year New Zealanders occupied Canton and erected a radio station there. The islands
are valuable as trans-Pacific aviation stations.

March 7 . — The Coast Guard Service announces it is assigning 8 cutters to a Bering Strait patrol despite advices from
Japan that it has abandoned its “fishing exploration cruise” in Alaskan waters.

President Roosevelt nominates J. B. Poindexter for another term as Governor of the Territory of Hawaii.

March 8 . — Secretary Cordell Hull states that the United States and Britain have a “fairly accurate understanding as
to each other’s attitude with regard to the ownership of the Canton and Enderbury islands”. Members of the House
of Commons have asked what the British government is doing to preserve British rights. A Berlin official states that
the incident shows that the United States is ready to take what it wants and talk about it later. Japanese officials are
reported to be concerned about Britain’s “tolerant attitude” with respect to the matter which is believed to indicate
Anglo-American cooperation in the Pacific. Canton island measures 8 by 4 miles and Enderbury 3 by 2-3/4 miles.

An amendment to the Department’s appropriation bill is approved by the Senate appropriations committee
forestalling dismissal of some 3000 Filipinos employed in the Post Office and Treasury departments. The bill
originally excluded “aliens” from employment, but the amendment permits employment of any person "eligible for
citizenship who has filed a declaration of intention to become a citizen or who owes allegiance to the United States”.
Sen. Carter Glass, Chairman, states the provision embodies a policy to which the committee will in the future
adhere.

March 10 . — The statement of Geoffrey Shakespeare in the House of Commons that the facilities of Singapore may
be made available to the United States “arouses much interest” in Washington.

Reported that the United States has rejected, for military reasons, applications of British and Dutch aviation interests
for permission to establish commercial air bases in Hawaii.

Sen. R. S. Copeland introduces a bill providing that Filipinos who were permanent residents of the United States
when the Tydings-McDuffie Faw took effect (May 1, 1934) may be naturalized as American citizens.

March 11 . — President Roosevelt sends Congress, without comment, the report of President Manuel L. Quezon
covering the period from the inauguration of the Commonwealth, November 15, 1935, to the end of 1936. President
Quezon reviews the activities of the Philippine government, the soundness of the present economic and financial
conditions of the country, the need for diversification of crops in view of the prospective curtailment of the free
entry of Philippine products into the United States, the advisability of starting new industries, especially for the
production of food and clothing, which constitute the main imports, and stresses the defense preparations, stating
that "the defense function, inherently the first responsibility of sovereignty, presents in the case of the Philippines,
problems of unusual gravity.”

Reported that an order of the British authorities last March put Canton and Enderbury islands under the jurisdiction
of the British Governor of the Gilbert Islands.

March 12 . — Some Filipino members of the Joint Committee state that the draft of a scheduled speech of High
Commissioner McNutt which they have seen indicates that the Roosevelt administration has decided because of the
international situation “to defer complete independence to the remote future”. Commissioner Quintin Paredes is
reported to have suggested to President Quezon that the McNutt speech be broadcast in the Philippines as “of great
importance to the Philippines — a message all Filipinos should hear”. Said that Roosevelt advisers are studying
advisability of postponing congressional consideration of modification of the Tydings -McDuffie Act until a
comprehensive political and economic policy has been definitely chartered, as the prospect of a divided report of the
Joint Committee may have an unfortunate effect.

March 14 . — Former Senator H. B. Hawes is reported to have written President Roosevelt urging that the United
States retain possession of the Philippines until 1946 because of the danger of the country’s seizure by Japan.

Other Countries

Feb. 13 . — Chinese admit Japanese are moving forward from both the north and south along the Tientsin-Pukow
railway toward its junction with the Funghai line at Hsuchow.

Fuehrer Adolf Hitler and Chancellor Kurt von Schuschnigg are understood to have agreed to maintain the principles
of the Austro-German agreement of 1936, but it is said Hitler refused to dissociate himself from the Nazi’s in
Austria and their activities while Schuschnigg refused to join the Anti -Comintern pact. Angry demonstrations were
staged in Vienna on return of Schuschnigg from his conference with Hitler, but tension in other capitals relaxes as it
is believed Hitler reiterated his hands-off policy with respect to Austria.

Feb. 14 . — Singapore naval base is formally opened and the new graving dock is named after King George VI, with
the ships of three friendly powers attending.

Japanese press dispatch from Singapore, published in Tokyo, states that “in spite of British excuses, there is every
evidence that the visit of the 3 American cruisers is nothing more than a demonstration against Japan. . . Britain,
following its successful campaign on isolating Germany from the world before the Great War, is now trying to
isolate Japan. . .”

The Foreign office spokesman hints in a press conference that Japan might reconsider its refusal to give information
about its naval building program if it were unofficially approached. He agrees that unofficial information would not
necessarily be binding.

U. S. Marines prevent armed Japanese military officers from entering the American defense sector in Shanghai
International Settlement. The attempt was apparently an outgrowth of the establishment of armed Japanese patrols in
Nanking Road yesterday, which the Japanese explain are for protection of Japanese troops which frequently pass.
Japanese planes attack American Baptist Mission Hospital at Chengchow several times injuring a number of
Chinese patients. A 40-foot American flag and the letters U.S.A. are painted on a roof and a big American flag flew
on a staff nearby. More than 100 bombs were dropped on the city. Port authorities are holding the liner President
Doumer , pride of the Messageries Maritimes, Shanghai -bound, at Rokuren, the Japanese objecting to picture-taking
by some of the passengers and crew while in the Inland Sea. The ship has not been since heard from.

Josef Stalin, breaking long silence, states that internally the bourgeoisie has been crushed and a socialist state
established, but that the Soviet Union is still in danger of armed attack by capitalist countries. He urges that the
international proletariat must be linked up with the Soviet people and connections with the working classes in
bourgeois countries strengthened and organized in order to give political assistance in event of an armed attack on
the Soviet Union.

French diplomats ask Vatican to use its influence with Gen. Francisco Franco to end bombing of civilians in Spain.

Feb. 15. — British, French, and American authorities have agreed to support the Shanghai Municipal Council in
opposing Japan’s attempts to interfere with the functions or character of the administration, according to British
Foreign Office official.

U. S. Marines for the fourth time prevent entrance of armed Japanese troops in the American defense sector in
Shanghai. A Japanese spokesman states they want to place patrols in American sector to supervise civilian and
military Japanese in the area. Settlement authorities consider the presence of armed patrols as likely to increase
existing uncertainties rather than promote peace and order. With reference to the recent clashes between American
forces and armed Japanese patrols in Shanghai, the Japanese army spokesman states that Japanese military are not
liable to arrest in Japan and consequently will not submit to arrest by Shanghai Municipal Police. Several American
woman missionaries narrowly escape death with bombing of mission boats on the Yellow River where the
Independent Gospel Boat Mission has been carrying on relief work. Chinese troops retake Tsining.

“Understood” in Vienna that Schnuschnigg has appointed Dr. Albert Seyss-Inquart, a prominent Austrian Nazi,
Minister of the Interior, while Hitler was reported massing troops on the border in connection with an ultimatum
demanding strong Nazi representation in the Austrian Cabinet. Further yielding to Hitler demands, he also appoints
Nazis or Nazi sympathisers to 4 more Cabinet positions — ministers of justice, finance, forestry, and labor, and the
new Cabinet immediately decides to submit to President Wilhelm Miklas a proposal for amnesty to all persons
convicted of political crimes. Berlin communique states measures have been agreed on “which will guarantee such

close and friendly relations between the two states as will correspond to the history and general purpose of the
German people”. French political writer Pertinax states: “We are witnessing one of the greatest events in
contemporary history, the reprecussions of which will be beyond measurement.”

Reported that Russia will enter the naval race and build superdreadnaughts and cruisers, and that all foreigners will
be evacuated from Leningrad which will be converted into an impregnable naval and military fortress.

The General Confederation of Labor of France, acting against the regime of Premier Camile Chautemps, demands
the resumption of former Premier Leon Blum’s reforms, including control of banks, foreign exchange,
nationalization of transportation and insurance, old age pension, a national unemployment fund, and a labor code.

The Congress ministries in Bihar and the United Provinces, India, resign following the setting aside by the Governor
of Bihar of an order of the Premier for the release of 38 political prisoners. Mahatma Gandhi states, “It is the
principle that counts. If a minister is supposed to have power, why should the Governor interfere?”

Chinese foreign legion airmen, including Americans and Russians, continue their smashing success against the
Japanese. Japanese troops are reported to be seriously affected in morale.

West and northwestern Euthopia reported in revolt against the Italians.

Feb. 16 . — French and British governments have instructed their Ambassador in Berlin to request information on
events in Austria and to state the two powers are far from being disinterested in the position of Austria. Radical
Austrian metal workers, representing practically all the heavy industries, stage an impressive demonstration in
Vienna against the appointment of Seyss-Inquart as Minister of Interior. Inquart has already proposed heavy
sentences on publishers and editors found guilty of “jeopardizing Austro -German relations”. It is believed that
Mussolini has renounced the protection of Austria and is paying the price for the continuation of the Rome -Berlin
axis. London reports are that Hitler is still dissatisfied and wants closer Austro-German military cooperation and is
insisting that Austria participate in the anti-Communist pact.

U. S. Marine headquarters in Shanghai announces that Japanese military commanders have “expressed regret that
the operations of Japanese patrols have given rise to controversies” and that the Japanese “stated instructions have
been given to gendarmes not to extend their routine patrols to the American defense sector.

Marshal Pai Chmig-hsi, Moslem warlord of Kwangsi province, urges the 50,000,000 Mohammedans of China to
unite against Japan.

Stated in the House of Commons that the discharge of prisoners including terrorists with the worst police records,
could not be agreed to by the Governor-General of India.

Two rescue planes reach the four Russian scientists afloat on an ice floe of Greenland, their first contact with the
outside world in 8 months.

Feb. 17 . — Sentiment in favor of big navy program for the United States is growing rapidly in view of indications
that the Austro-German crisis is directly related to the Mediterranean balance of power and indirectly to the situation
in the Far East. Mussolini’s silence has contributed to the impression Italy expects to profit in the Mediterranean,
and the strengthening of the alignment against communism in Europe is regarded in Washington as affecting the
United States because of its repercussions on the balance of power in the Orient. Seyss-Inquart entrains for Berlin in
response to several urgent telephone calls, “to inform the German government as a representative of the Austrian
government of the execution of the measures agreed upon”. The new Cabinet earlier in the day complied with the
German demand for release some 3,000 political prisoners, including 54 involved in the bloody putsch against
Chancellor Adolf Dolfuss in 1934. Czechoslovakia is speeding construction of its fortifications on the Austrian
frontier because of the increasing German domination over Austria. British Foreign Secretary Anthony Eden states
in the House of Commons that the League of Nations has “some duties with respect to the integrity and

independence of Austria” and that Britain is not willing to make the first move. He said Germany had sought neither
the views nor the advice of the government. It is understood that Eden informed the Austrian Ambassador it is not
prepared to support Schnuschnigg in the event of grave developments. Observers believe that Britain and France are
both convinced it would be impossible to check Hitler’s plans as to Austria. The official organ of the Italian Foreign
Ministry states that “the new Austro -German collaboration is greeted with open favor by the Italian government as
the start of a new era of pacification between two great people bound by race, language, and common culture.”
French Foreign Office officials voice suspicion that Mussolini abandoned Austria to Germany in return for German
support of further Italian conquests in North Africa.

Finance Minister O. Kaya submits an extraordinary military budget bill to Emperor Hirohito, calling for
4,850,000,000 yen. Increased taxes and new bond issues are expected to raise the funds.

French line Doumer is released by Japanese authorities after 2 members of the crew were fined $14.50 each. The
ship was held up for several days on suspicion that members of crew were photographing fortified areas.

Feb. 18 . — Announced at Tokyo that fresh troops are being sent to China “to meet the new situation”. General Iwane
Matsui recently asked for 4 additional divisions because of the growing length of Japanese lines of communication.
Foreign military observers in China state that recent military events on many battle fronts appear to be turning in
favor of China. Chinese have regained their morale, and are now adopting positive tactics. The People’s Volunteer
Corps and guerilla units are growing formidable and the air force is hitting its stride. Chinese planes, some operated
by Russian and American pilots, shoot down 5 Japanese pursuit planes over Hankow during an air raid of 15
Japanese bombing planes and 15 pursuit planes, apparently sent in retaliation for recent heavy successful bombing
of Japanese troop concentrations on all fronts. Reported from Shanghai that General Matsui is being recalled and
General Shunroku Hata, will take his place, the reason suggested being that Hata is more diplomatic and Cabinet has
decided to treat foreign interests, including customs and other Shanghai problems, in more conciliatory manner.

A joint Austro-German communique is issued at Vienna stating that “no further measures” are anticipated toward
making Austria a Nazi state and that Austrian sovereignty will be upheld. A Nazi spokesman states Hitler is
determined to complete an economic Austro-German union, and that other nations had been informed their
interference would not be tolerated. France makes strong representations to Britain in favor of “maximum help” by
the 2 powers to Schnuschnigg to resist further Nazi encroachments. The situation was described as of grave concern
to all Europe. Reports that Hitler and Mussolini will soon announce a military alliance, strike the French government
like a physical blow. Mussolini has long wanted this, and his surrender of Austria to the Nazis is thought to have
been Hitler’s price. The Italian Ambassador in London is reported to have demanded British recognition of Ethiopia
as an Italian colony before a discussion of Austrian and other European problems.

General Franco states in reply to British offer of good offices to obtain agreement regarding bombing of civilians
that he has taken note of humanitarian initiative of British Government and regrets the loss of life occasioned, but
has no answer to that initiative.

Prime Minister William Mackenzie King of Canada, although agreeing that the 30,000 Japanese in British
Columbia, constitute a serious problem and that it is desirable to place Japanese immigration on same basis as
Chinese, which amounts to total exclusion, states this should be done by agreement rather than by law as
international affairs are already bad enough and such an act might strike back not only against Canada, but the
Empire.

Feb. 19 . — General mobilization bill is introduced into Japanese Diet.

Feb. 20 . — Hitler in a Reichstag speech announces recognition of Manchukuo and repeats his demand for return of
German colonies. He states that since Italy’s withdrawal Germany no longer thinks of return to League of Nations.
He denies reports of differences between Nazi party and the army. He declares that Germany will protect the
political freedom of the Germans in Czechoslovakia, and will ignore Britain, France, and other western powers in
carrying out his new policy. He declares curtly that only a restoration of Germany’s colonies would pave the way for
a new understanding with Britain. He says Germany had no territorial claims against France since the return of the

Saar. He says cooperation among Italy, Germany, and Japan is a powerful factor in the Pacific and that Japan is a
defender of Western civilization. He attacks the Soviet Union as “an incarnation of the urge to destruction — if Japan
is damaged, not England or the United States would profit, but Bolshevism. If Spain becomes Bolshevised, the
epidemic will spread elsewhere.” Austrian Ambassador to London indicates that Britain and France will lend strong
support to Austrian freedom. Italians are reported to be inwardly disquieted, though publicly praising the Austro -
German orientation. British Cabinet’s two unusual week-end meetings indicates difficulty of decision whether to
continue a watchful waiting policy or to respond to French pressure to show firmness.

Foreign Secretary Eden and Under Secretary Viscount Cranbourne resign. Eden’s uncompromising attitude toward
Germany and Italy caused the break with Prime Minister Neville Chamberlain who wants a conciliatory policy
toward Mussolini and a four -power pact between England, France, Germany, and Italy. The development is believed
to indicate a victory for the “Old Guard” over proposals of advocates of the League of Nations, and a breach in the
Anglo-French entente. London crowds shout, “We want Eden. . . Up with the League. . . Don’t sell out to Italy”.

Mighty Japanese and Chinese fighting forces are converging on the Yellow River where China’s “Battle of the
Marne” has begun in South Shansi and Northern Honan. Chiang Kai-shek in radio broadcast on 4th anniversary of
the “New Life” movement states that Japan’s military adventure in China has “fundamentally failed” for although it
has mobilized more than 1,000,000 soldiers and expended billions of yen, it thus far occupies only 1/7 of the total
territory in 7 provinces, and its influence is confined to a few cities and towns; troops do not dare go beyond lines of
communication. Our vast territory and huge population, well -developed culture, abundant natural resources, and a
history of more than 4,000 years — all these factors assure China ultimate victory”.

Rebels win important positions near Teruel, making the holding of the city untenable.

Two Soviet ice-breakers rescue the 4 marooned scientists who had drifted about 1200 miles to the southeastern coast
of Greenland.

English Post Office announces inauguration today of the despatch of all first-class mail by air for the Far East and
Near East at 1-1/2 pence a half ounce for letters and a penny for post cards.

Feb. 21 . — Prime Minister Chamberlain invites the Italian Ambassador to a conference at the Premier’s official
residence. Lord Halifax also was present. It is believed Chamberlain wishes to sidetrack Spanish and other issues in
order to hurry completion of an Anglo-Italian rapprochment in Mediterranean. Eden who resigned yesterday
receives messages from all over the Empire urging him to hold steadfast. British and French officials agree that the
“diplomatic offensive” by Italy and Germany and the resignation of Eden left Western democracies facing one of the
gravest crises since the World War.

American press comment on Hitler’s speech is generally unfavorable and frequently sharply critical.
Washington Herald states that “Hitler’s endorsement of Japanese invasion of China is an open menace to us and to
our interests in the Far East.”

China formally protests German recognition of Manchukuo. Understood in China that Hitler’s speech has dashed
hopes for strong support from Britain, the United States, or France, and believed the German move was a deliberate
effort to divert attention from Japan. Tokyo is reported jubilant and Hitler’s speech is called an important lesson to
China. Russian officials have made no comment. Rome received the speech “very favorably” but some were
disappointed at lack of definite assurance of Austrian independence.

Japanese bomb Canton area 4 times inflicting considerable damage. Chinese reports state that the Bocca Tigris forts
sank 2 or 3 Japanese destroyers which attempted to go up the river to shell Canton. Chinese troops began a general
offensive on the southern sector of the Tientsin-Pukow railway front in a desparate effort to divert the Japanese from
a concerted drive against the Lunghai railway. The Asahi Shimbum states editorially that the appointment of Sir
Archibald Clark Kerr as British Ambassador to China may result in a reversion of Britain’s Far Eastern policy which
may serve to “remove whatever misunderstanding there may be between Britain and Japan.”

The 51st annual session of the All-India National Congress opens at Haripura, with Subhas Chandra Bose as
President. The working committee adopts a resolution stating the Congress does not desire to precipitate a crisis by
instructing ministers to resign in protest against the Viceroy s interference in Bihar and the United Provinces, but
invites him to reconsider his decision. Bose urged ultimate severance of British relations, but states: “Once we have
real self-determination, there is no reason why we should not enter into the most cordial relations with the British
people. . . What future relations will be it is too early to say. . .”

Feb. 22 . — Officially announced that Lord Halifax has been asked to take charge of the Foreign Office temporarily.
Prime Minister Chamberlain outlines foreign policy based on safeguarding British interests and lives, settling
disputes peacefully, and entering into friendly relations with nations “willing to reciprocate friendly relations and
keep the rules of international conduct.” He discloses Ambassador Dino Grandhi said Italy would accept British
formula for regulating withdrawal of foreign volunteers from Spain and granting belligerent rights to the Spanish
nationalists, and intimated British government is considering recognizing conquest of Ethiopia. He says Anglo-
Italian relations had been steadily worsening and that an opportunity arose to break the vicious circle when the
Italian Ambassador reported that Italian government was ready at any time to open projected conversations. The
difference between Eden and himself only became acute last Friday, he says, Mussolini, he reveals had virtually
awaited Eden’s resignation and then agreed to terms on which Eden himself insisted. To rebuff the Italians now
would result in an intensification of anti-British feeling which might rise to a point making war inevitable. No
departure from the British policy of closest friendship with France is involved. Eden states he resigned because
unable to agree that Italy’s attitude made advisable at present an Italo-British conference to promote better relations.
Italian attitude toward international problems and toward Britain is not such as to justify this course. There is a
progressive deterioration of respect for international obligations. This is the moment for country to stand firm. Lord
Cranbourne intimates he resigned because he is in agreement with Eden and says that to enter into conversations
with Rome now would not be regarded as contribution to peace but surrender to blackmail. Laborites charge that
Chamberlain’s “madness” would weaken British relations with the United States, and a crowd is driven out of the
Parliament lobby shouting “Hitler and Mussolini shall not dictate to Britain. Eden must stay . . . Chamberlain go . . .
Arms and food for Spain. . . No money for Mussolini.”

In the course of further debate Chamberlain warns Commons that Britain is in danger of being forced into war
unless it acts independently of the enfeebled League of Nations which does not yet provide adequate collective
security. “We must not delude ourselves and lead weak and small nations into thinking the League will protect them
against aggression.” He does not, however, repudiate the League, expressing hope that the Covenant may some day
be made applicable to aggressor nations. Lloyd George asserts the dictators had been determined to drive Eden out
of office because he was the only man that stood up to them. A speaker for the government declares it is not true that
his colleagues wanted to get rid of Eden and that most strenuous efforts had been made to retain his great services to
the government and nation. Another speaker declares, “The choice has come down to this: do we desire
conversations with Italy or not? If we do, the sooner we have them the better”. Chamberlain states he is unmoved by
the gibes thrown at him. A great government can be magnanimous. After the speeches the Laborite vote of censure
and non-confidence in the government for its conduct of foreign affairs is defeated by a vote of 330 to 168.

Moscow officials state that Britain’s capitulation to Italy has heightened danger of war. Members of French
Chamber of Deputies state changes in London raise possibility of a similar shift in Paris.

German officialdom is reported jubilant because Chamberlain seems to be acting according to the Hitler-Mussolini
plan for the pacification of Europe — which was for either of the two fascist nations to effect an amicable
arrangement with Britain and then draw in the other. Reported from Rome by Reuter’s that there have been no anti-
British broadcasts from the Italian-operated Bari station for the past 3 or 4 days.

While indignation at Hitler’s speech continues to rise in China, the German Embassy at Hankow issues a
conciliatory statement declaring the speech is not to be interpreted as against China but against Communism, and
that Germany will remain neutral in the Far Eastern struggle and maintain friendship with China. Chinese states the
Hitler remarks represent an effort to “inject ideological prejudices into a simple case of international aggression and
invasion”.

Devastated Teruel falls into the hands of rebels. Rebel leaders believe the victory a decisive one and that it will soon
result in final victory.

Vienna police arrest some 20 noisy Nazis and Schnuschnigg has imposed a month’s ban on political demonstrations.
Reliable sources state he has also secretly instructed police to restrict Nazi activities by forbidding them to wear the
swastika or use “Heil Hitler” as a greeting, requiring special permission to sing the German national anthem,
prohibiting individual display of German flags, and requiring approval of all Germanic associations by the police.

Police in Budapest, Hungary, arrest 75 persons at Nazi headquarters, alleging a plot to overthrow the government.

French Foreign Office issues a communique declaring France will remain faithful to its alliances and the League of
Nations.

The French Cabinet approves a long-term defense plan to cost 10,000,000,000 francs.

Feb. 23. — Gen. Shunroku Hata succeeds General Matsui as Japanese commander-in-chief in Central China, and
other important changes are also announced. Japanese are reported held up on all fronts and shocking brutalities are
reported being inflicted on peasant population in retaliation for successful Chinese guerilla attacks. Some 2000
civilians in Tsining were massacred and most of the women carried off and raped. In Nanking, 500 captured Chinese
soldiers were forced to climb to the top of a building which was then set on fire. Seven Chinese planes bomb
Taihoku, capital of Formosa, and other points, inflicting some damage. This is the first time Japanese territory has
been bombarded since 1864.

The British Labor and Trade Union Congress issues a manifesto declaring that the present government holds no
mandate from the electors for the vital change made in foreign policy, and challenges that it submit the issue to the
electorate.

The French Senate’s secret defense committee meets for the first time since the World War.

Feb. 24 . — Chinese leaders express fear that Britain’s recognition of Italian conquest of Ethiopia may lead to a
similar policy in the Far East.

Germany is reported to have accepted the British plan for withdrawing foreign volunteers from Spain.

Feb. 25 . — Secretary Hull discloses that the government has informed Japan that though it has voluntarily urged
American citizens to leave danger areas, it upholds their right to remain and that it will hold Japan responsible for
any damages. New British Ambassador to China states that Britain is continuing cooperation with the United States
in connection with Oriental politics. China formally protests to Germany against its recognition of the unlawful
Machukuo regime, “born of Japanese aggression and military force” and expresses disappointment and surprise at
the fact that Germany has not seen the situation in true perspective. Chinese guerillas in a body of several thousand
attack Japanese 32 miles west of Shanghai. Chinese aviation officials claim that the air raid on Formosa resulted in
the destruction of a considerable number of Japanese planes in the Taihoku military airfield and wrecked part of the
largest power house in Formosa. The Japanese-sponsored North China Provisional government announces that
Tsinghua University is not reopening. The buildings and equipment are valued at $10,000,000, all from American
Boxer Rebellion indemnities, representing America’s greatest cultural gift to China. The Japanese have been using
the once beautiful buildings for barracks.

Chamberlain appoints Lord Halifax Foreign Minister, disregarding Laborite protests that the foreign minister is
traditionally a member of the House of Commons.

Schnuschnigg in a speech before the Austrian parliament states that the Fatherland Front will remain the sole
political organization, that Austria will not permit illegal Nazi activities or interference and will fight to remain free.
He states that Germany is pledged to uphold Austrian independence and refers to Austria’s friendly relations with

Italy. German Nazis are reported to be indignant and contrast Schnuschnigg’s praise of Mussolini with his failure to
say one kind word about Hitler, and declare that Schnuschnigg has “spoiled his chances.”

The German press makes much of the British swing toward cooperation with Germany and Italy and states that
France must choose between London and Moscow.

Feb. 26 . — Premier Chautemps states before Chamber of Deputies that France will not permit any changes in the
boundaries of Central Europe or allow the fascist powers to gain a foothold in Spain. He praises both Eden and
Chamberlain, but avoids taking sides in the British Cabinet quarrel. He rejects leftist demands for active intervention
in Spain and China, stating that France can not play the role of gendarme to the world. Foreign Minister Yvon
Delbos states that France approves of Chamberlain’s Italo-German agreement policy but that it will maintain its
obligations to Czechoslovakia and the Franco-Soviet mutual assistance pact.

Foreign Minister Hirota states that Japan will not engage in a naval building race and hopes to prevent other nations
from doing so. He admits relations with America are “very delicate” and that “some misunderstanding exists among
the American people but that the United States government is well-informed and trying to maintain a neutral spirit
among the people”.

Feb. 27 . — High Washington officials state the United States is not in a position to enter into any naval agreement at
present. The Japanese Foreign Office denies it ever requested the United States government to withdraw its nationals
from zones of hostility in North China, but American state Department officials state that Japan issued a circular on
February 3 to all foreigners in certain parts of China advising them to seek places of safety. According to a Chinese
report from Amoy, a foreign traveler said that some 40 persons were killed, others wounded, and about 1000
arrested in Kobe when some Japanese reenforcements refused to go aboard a transport bound for China on February
18. Some of the soldiers joined in an anti-war parade organized on the spur of the moment by their families who had
come to the wharf to say good-bye and gendarmes opened fire with rifles. One of the oldest and most respected
citizens of Shanghai, Dr. Edward Birt, 57, a German physician, is attacked and seriously wounded by a drunken
Japanese soldier who slashed his face with a dagger, crying, “English pig!”

Feb. 28. — Gen. Herman von Goering, Minister of Aviation, hints that the first action of the German airforce may be
to protect German minorities outside of Germany. The German government abolishes the age-limit for military
service as regards retired regular and reserve officers and men. Reported that Hitler will visit Mussolini in May.

Admiral Ishimaru writes in a Tokyo magazine that Japan is building 48,000-ton ships and that a naval race has
started.

March 1 . — A Chinese army of 1,000,000 men is reported retreating through southern Shansi province, leaving
practically all of China north and east of the Yellow River in Japanese hands.

Gen. Quiepo de Llano, Spanish rebel “radio general”, states that British possession of Gibraltar will terminate soon
and that it has been lost to Britain because of its “cowardice and treachery”. “The rock south of Spain is now used as
a piracy den and soon will be returned to the fatherland.”

Gabriele D’Annunzio, famed Italian poet, soldier, and patriot, dies, aged 74.

March 2 . — Premier Prince Fumimaro Konoye, in defending the government’s war mobilization bill, opposed as
being fascistic, states that the measure “does not aim at dictatorship and suits the particular situation. . . . Unrest is
prevailing throughout Japan”. The formation of the “Central China Government” by Japan is delayed due to
“difficulty in finding suitable Chinese personalities”. The 15th U. S. Infantry Regiment leaves for the United States
after a quarter of a century in Tientsin.

General Franco cables London a denial of reports that de Llano warned that Spain would recover Gibraltar from
Britain after Chamberlain informs the House of Commons that an investigation of the remarks is under way.

March 3 . — The Chinese communist 8th Route Army, which began retreat after the Japanese occupation of Chungtu,
is reported trapped in the west Shansi mountains and to have suffered heavy casualties.

The Austrian Cabinet refuses to ratify the agreement made by Seyss-lnquart permitting Nazis in the province of
Styria to wear Nazi badges and give the Nazi salute.

Prime Minister J. A. Lyons of Australia announces that the Commonwealth Cabinet has decided to give full support
to the Chamberlain policy.

March 4 . — Bombing of newspaper offices and other acts of terrorism continue in Shanghai.

In another treason trial of 21 former high Soviet officials, the accused confess to various crimes, including plotting
to kill Stalin.

The London Daily Herald states that it is rumored Mussolini will ask Emperor Haile Selassie to cede Ethiopia to
Italy in exchange for his appointment as ruler of a large part of the country under an Italian viceroy.

March 5 . — Premier Milan Hodza of Czechoslovakia in a speech before Parliament states that Germany’s
“protection” of Germans in the country would constitute unwarrantable interference, and warns Hitler that
Czechoslovakia would resist any German invasion.

Rebel planes bomb Barcelona seven times during the day and casualties are high. Systematic air raiding has been
resumed on major centers of population in order “to crack the government morale preparatory to the Spring
offensive”. Some 70,000 Italian troops are concentrated at Guadalajara for a major offensive against Madrid.

The Dutch Minister of Colonies states in the Parliament that in view of the Dutch air force and an army of 60,000, it
would be very dangerous for any foreign power to invade the Netherlands Indies. A communist leader urges that
more native troops be recruited for the army in the archipelago.

March 7. — The Government destroyer Lepanto torpedoes and sinks the rebel cruiser Balleares 75miles off Cape
Palos, drowning some 600 seamen, some 200 being picked up by a rebel ship in the neighborhood.

Emperor Selassie from his place of exile in Bath, England, brands as absurd the rumor that he may be reinstated as a
limited monarch.

March 8 . — Relative to reports that British Ambassador Kerr is obtaining Japanese peace terms from Shanghai
commanders before going to Hankow, Foreign Minister Hirota states that Britain is not seeking to intercede in the
Sino-Japanese conflict. Prince Ta, head of the Alashan Banner in western Inner Mongolia, has been taken prisoner
by the Mohammedan Mongol Governor, Ma Hung-kwai. Prince Ta is a cousin of Emperor Pu Yi of Manchukuo and
was reported as heading a pro-Japanese rebellion.

Preliminary conversations between British Ambassador Lord Perth and Italian Foreign Minister Count Galeazzo
Ciano open in Rome, but announcement of Italy’s plans for a gala welcome for Hitler when he visits Rome is taken
as a warning that the Rome-Berlin axis is as strong as ever. At a state banquet in Rome in his honor, Polish Foreign
Minister Joseph Beck proposes a toast to the King of Italy and Emperor of Ethiopia and the Queen-Empress Helen.
Rumania is reported to have accredited its new Minister to the King of Italy and Emperor of Abyssinia.

Three of the Soviet leaders now on trial for treason admit they aided in bringing about the death of Maxim Gorky,
noted writer, who died last year.

March 9 . — Some 900 Japanese shock troops cross the Yellow River at Szeshui, northwest of Cheng-chow, after
intensive artillery fire. If the Japanese succeed in crossing in force, they would be in a position to cut the Lunghai
railway line between Chen-chow and Loyang.

Schnuschnigg issues a proclamation calling a nation-wide plebiscite Sunday to determine the people’s attitude on
the issue of maintaining Austrian independence. All citizens over 24 years of age will be allowed to vote. Nazis
protest that the exclusion of younger voters is intended to eliminate many Nazi votes.

Geoffrey Shakespeare, parliamentary secretary to the Admiralty, states in the House of Commons that the United
States may be allowed to use the Singapore naval dry dock by lease or otherwise. Facilities for docking and
repairing foreign warships on a repayment basis in British naval dockyards is a normal practice subject to our
interests not being prejudiced thereby, he explains. Chamberlain states that Britain “reserves its rights over Canton
and Enderbury islands. Proposals will be submitted in the hope of ending the controversy over them with the United
States”.

Selassie is reported from London to be willing to abdicate on payment of a large sum of money by the Italian
government and on condition that his son, the Duke of Harrar, be made Ethiopian regent. He is understood to have
approached the British government on the matter.

March 10 . — German Foreign Minister J. von Ribbentrop, visiting London to confer with Chamberlain, meets with
unfriendly demonstrations in the streets.

Chautemp’s second Radical Socialist Cabinet resigns as a result of communist and socialist disapproval of the
government’s demand that it be empowered to rule by decree and to take drastic measures to relieve French
financial troubles.

Some 180,000 of Franco’s best troops are advancing over a 100-mile front in northern Aragon and I take a number
of towns.

March 11 . — The Japanese-sponsored Federated Reserve Bank of China opens in Peking.

Disorders in Austria increase to near civil war and scores are injured in rioting in various places. Nazis warn
Schnuschnigg he will meet the fate as the assassinated Engelburt Dollfuss, former Premier. Troops and police have
been ordered to maintain a state of “permanent alarm”. Nazis have been instructed to boycott the plebiscite.
Germany is reported to be mobilizing troops in Bavaria on the Austrian border. Britain expresses the hope to
Germany this is “merely for the purpose of preserving order”, and Britain and France are reported to be in constant
communication on the situation. Reported later in the day that Germany served an ultimatum on President Miklas
and Schnuschnigg giving them one hour to order a postponement of the plebiscite and to announce a change in the
regulations governing it. It is said also that Germany has demanded that a Nazi Chancellor be appointed and that the
Nazis be given a three-fourths representation in the Cabinet. Later Schnuschnigg resigns, stating in a radio address
that Hitler had threatened an armed invasion and that Miklas had ordered him to yield to force. “We yield to
violence”, he declares. Seyss-lnquart is installed as Chancellor and immediately telegraphs Hitler that the “Austrian
Provisional Government” has directed him to ask him for support in the form of troops to preserve order. At 10:15
P. M. German troops from Munich enter Austria, occupying Braunau, Hitler’s birthplace. The French and British
Ambassadors in Berlin protest and state the German action in Austria “is bound to produce most grave reactions of
which it is impossible to foretell the outcome”. Reported also that Germany has announced a legal claim to the
restoration of all its pre-war colonies.

President Albert Lebrun names Leon Blum Premier and tells him he must form a Cabinet before tomorrow night.

Spanish rebels take Belchite and sweep southward and eastward after the retreating government forces.

March 12 . — German troops continue to stream into Austria. A new Nazi Cabinet is formed and a Nazi general
appointed to head the army. Nazi Storm Troopers seize telegraph and newspaper offices. General Goering states the
nazification of Austria marks the rebirth of a “Greater German Reich”. Hitler issues a proclamation stating that a
German “defense force” is marching into Austria to protect the nazification of the country, and declares that
Germany has rescued Austria from the grip of a small minority "lacking even the slightest legal standing”. “1 have
decided to extend the air of the Reich to the millions of Germans in Austria. . . I, as Fuehrer and Chancellor of the

German people, shall be happy again to be able to enter as a German and free the citizens of this land which is ray
own land. . . German troops shall guarantee that within the shortest possible time the possibility will be given the
Austrian people by means of a real plebiscite to shape their own future destiny”. A Hitler message is made public in
Rome stating that “whatever may be the consequences of coming events, I have already traced a definite German
frontier with France and am now tracing another just as definite with Italy. This is Brenner Pass.” A military
communique issued in Rome states that German and Italian troops are fraternizing in Brenner Pass. Though it was
reported that Italy made a last-minute effort to induce Hitler to refrain from the invasion of Austria, the Fascist
Grand Council in Rome expresses approval of the nazification of Austria and rejects a French request for concerted
action to prevent German penetration of the country. Reported that Germany has rejected British and French
representations as “inadmissible”. French troops along the Maginot line are put on 24-hour duty. Czechoslovakia
again warns it will use military force to resist invasion. The British, German, and French Ambassadors in
Washington confer with Secretary of State Hull. State Department officials emphasize United States aloofness.

March 13. — Hitler, preceded by 3,000 bodyguards, enters Vienna to see the Nazi Cabinet installed, while German
troops by train, motor, and airplane swarm over the entire country.

Hirota tells the Diet that Japan is following a policy of increasing friendly relations with Britain.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary. Philippine Magazine , 35(4), 168-170.

News Summary, Philippine Magazine: March 14 - April 8, 1938

News Summary
The Philippines

March 14 . — Assemblyman Jose Zulueta of Iloilo states he is convinced the postponement of independence would be
best for the Philippines in view of the Far Eastern situation and that he is willing to make this an issue in the coming
election in his district.

Fire starting in a bakery destroys 35 business establishments in Baguio; damage estimated at P500,000.

March 15. — U. S. High Commissioner Paul V. McNutt in a radio broadcast from Washington, understood to have
been approved by the Administration, pointing out the mutual advantages to be derived from continued Philippine -
American political and economic relations, advocates a “realistic re-examination" of the whole question. (See
editorial in the April Philippine Magazine). President Manuel L. Quezon later issues a statement declaring that the
High Commissioner’s “presentation of the facts is unassailable . . . No reasonable person can find fault with the
proposition that a re-examination be undertaken at once ... It must be noted that the High Commissioner
emphatically takes the position that no permanent political and economic relationship with the Philippines shall be
adopted as a policy unless the ‘Filipinos want it'”. Later he sends a letter to Speaker Gil Montilla while the
Assembly is in session stating that he has not committed himself on the questions touched upon by the High
Commissioner. He also sends a verbal invitation to members of the Assembly for an exchange of views on the
matter at a luncheon to be held at Malacanan tomorrow, requesting them in the mean time to refrain from making
public commitments, especially on the floor of the Assembly.

Pablo Mauricio is sentenced to death and two other men are sentenced to life imprisonment for the murder of Percy
Hill on July 23, 1937. Six others involved in the case who pleaded guilty are serving prison sentences.

Maj. Gen. Lucius R. Holbrook, returning to the United States, says at Honolulu that the Philippine Army is making
excellent progress and that by the end of the transition period in 1946, the Philippines will have 400,000 trained
reserves, “potential reserves for our regular army in an emergency”.

March 16 . — After a meeting with his Cabinet at which it is reported a radiogram to High Commissioner McNutt was
discussed requesting further light on some of his proposals. President Quezon states at a press conference that while
he favors a re-examination and approves of most of McNutt’s statements, he was not aware of the fact when he
issued his statement of yesterday that the McNutt speech embodied certain concrete proposals as to reservations of
American authority with which he could not agree as the majority of these are precisely what in the Tydings-
McDuffie Act the Filipinos object to. “Under the proposed conditions I can not agree to any postponement of
independence much less the permanent continuation of American sovereignty. I do not believe our people would
agree to these proposals”. He states that the economic proposals also appear to be one-sided and that while he does
not expect the United States to make any sacrifices for the Philippines, the Philippines should not be required to
make any sacrifices to the United States, and a revision should be based entirely on mutual and reciprocal benefits.
He declares that a continuation of a political status similar to the present would not be acceptable because the
powers exercised by the Filipinos are exercised merely on sufferance and while the system works well now because
of the persons involved, a reactionary administration in Washington could reverse everything. He would favor a
postponement of independence, he states, if the Philippines were extended the necessary powers to manage their
own affairs and control their own national life without interference. A dominion form of government such as
Canada’s would be acceptable and he would be willing to leave the management of foreign affairs and questions
such as immigration to the United States in such a case, but he expresses doubt that the United States would accept
such an arrangement. He again declares that he believes nothing more than a special trade -agreement between the
United States and an independent Philippines would be sufficient to protect the Philippines from invasion as the
Philippines would thus be internationally recognized as an ally of the United States. He says he would not object to a
plebiscite on the question. After the press conference President Quezon holds a 4-hour conference with members of
the Assembly and it is reported that a majority supports his stand. A newspaper survey indicates that some 55
assemblymen are ready to back whatever he may advocate, some 21 believe the Tydings-McDuffie Act should be

given a full test provided the economic provisions can be modified, 1 favors indefinite proposal of independence,
another permanent retention, and 12 are non-committal.

The Assembly confirms the appointment of Sultan Ombra Amilbangsa as Governor of Sulu.

March 16 . — Fire in Orani, Bataan, destroys some 1000 houses and renders 5000 people homeless. President Quezon,
on a short cruise on the Casiana to recuperate from the strain of his long conferences yesterday, visits the town and
declares a state of calamity.

March 17 . — Reported that President Quezon has sent High Commissioner McNutt his regrets that they should have
misunderstood each other on the nature of the revision proposals. Assemblymen intimate they are awaiting
developments in Washington and, specifically, a reply from McNutt to the Quezon radiogram. Assem. Benigno
Aquino states he will oppose any move to alter the Tydings-McDuffie program which does not preserve the
guarantee of independence. Assem. Felipe Buencamino states that the best thing to do is to get independence first
before entering into any permanent economic or political relationship with the United States. A newspaper roll of
the advocates of a dominion plan in the Assembly increases the number to 37 while those holding to the Tydings-
McDuffie program dwindles to 27. Assem. D. Maramba states that the majority are in favor of a dominion plan as
described by President Quezon and Assem. Tomas Oppus states he was already advocating it. “I have lost
completely my faith in the so-called international conscience. There is no such conscience and the world in its
madness as we see it now respects no international agreements”. Assem. Jose Romero, member of the Joint
Preparatory Committee, in Washington, urges cooperation among advocates of a realistic re-examination in order to
avoid defeat of the entire project. “Details of the revision can be handled as we meet them. . . It will take real
courage from both sides to put the plan through. . . . We face the wave of isolationism now sweeping the United
States.” Former Senator Juan Sumulong states that Quezon’s stand is “pitiful and deplorable”, although his
“instability” is “more apparent than real, his contradictions being actuated by a preconceived and well calculated
plan. . . When he speaks of a dominion form of government — a solution which is impossible of realization and
absurd in our case — or of any other form of local autonomy in substitution of independence, then we can be sure that
he remembers his imperialistic friends in Washington and New York and especially the local interests, American,
Spanish, and Filipino, which have helped to keep him in power during the past 30 years. . . The attitude of President
Quezon should receive an emphatic and decisive repudiation on the part of the people.” General Emilio Aguinaldo
states that High Commissioner McNutt’s idea constitutes a “preposterous disregard of the sacred ideals of liberty”
and laments the fact that the fact that the country has a leader because of whose “uncertainty” and “lack of sincerity”
"the cause of freedom is always facing abrupt changes and agony”.

President Quezon by executive order creates an advisory Council of State consisting of high administrative and
legislative officials as well as the members of his Cabinet. He also signs the bill confirming the London international
sugar agreement.

The Assembly approves a special public works bill authorizing the President to spend immediately 40% of the
P92. 000.000 4-year public works measure.

March 19 . — President Quezon issues an administrative order requiring strict observance of the seniority rule in
filling government positions and making promotions. Imperative departures from the rule must be submitted to him
for approval.

March 20 . — Alfonso Jakosalem, prominent in the Bisayas, dies in Cebu. Robert R. Landon, leading American
attorney in Cebu, dies, aged 65.

March 21 . — President Quezon nominates Joaquin M. Elizalde to represent the Philippines in the forthcoming
session of the International Sugar Council which meets once a year in London.

President Quezon is reported ill and has cancelled all his engagements for the rest of the month.

March 22 . — The Very Rev. Father Serapio Tamayo, four times Rector of the University of Santo Tomas and a
resident in the Philippines for 40 years, leaves Manila for Spain to assume the position of Rector of the Dominican
Convent at Avila.

March 24 . — High Commissioner McNutt returns to Manila on the Hawaiian Clipper and tells the press he put his
whole speech in the last paragraph and that other matters contained in the speech, including the reference to the
reservation of various powers, represent his own opinion and are subject to discussion. He states the speech was
designed chiefly for the information of an American audience. The next step, he states, is up to the Filipinos. Asked
as to the attitude of Congress on the question, he admits there is opposition but that nevertheless the proposal for a
re-examination “stands a good chance”. President Quezon is still out of Manila on his yacht Casiana, but sent the
High Commissioner a note of greeting which McNutt states is “generous and cordial”.

Prof. Otto Johns Scheerer, former head of the Department of Linguistics, University of the Philippines, dies at
Caloocan, aged 80.

March 25 . — President Quezon signs the special public works bill.

Placido L. Mapa, leading sugar man, proposes extension of the Commonwealth government for a period of not less
than 40 years and the postponement of export taxes until 5 years before the end of this period. Early independence,
he states, would bring ruin and new conquest.

March 26 . — Popular Front leaders after a “mass meeting” send a telegram to President Roosevelt asking for the
recall of High Commissioner McNutt “whose plan is incompatible with the people’s freedom”. They ask
“immediate independence, otherwise we foresee social unrest and bloodshed”. A total of P13.86 was collected from
those present to defray the cost of the telegram. Assemblymen ridicule the move as a silly gesture.

March 28 . — High Commissioner McNutt and President Quezon hold a 2-hour conference, but no statement is
issued, the latter, however, stating later that the conversation was “very satisfactory”.

President Quezon sends a message to the Assembly proposing a redirecting of the educational policy, especially as
regards secondary education, away from the too academic. He proposes also a shift in the financing, primary schools
to be financed by the central government, intermediate schools by the municipal governments, and vocational high
schools by the provincial governments. Regional agricultural, arts, trade and normal schools would also be
supported by the central government. Academic high schools would be supported by tuition and other fees in such
provinces as could not support them. Scholarships to help able but poor students would be granted by the central
government. An effective system of compulsory primary education for all children living within a certain distance
from a school would be put into effect within 2 years.

A commencement address made before a Catholic private school a few days ago by Archbishop Michael O’Doherty
is reported to be stirring administrative and legislative circles. The Archbishop deplored the opposition in
government circles to the bill now before the Assembly providing for religious instruction in the public schools and
said that this opposition is “strange and unexpected” from certain officials. It is believed he alluded to Vice-
President Sergio Osmena, who is also Secretary of Public Instruction. The Archbishop tells the press his address was
misinterpreted and that there is “no serious breach between the Catholic Church and the Commonwealth
government”. He states that the opposition to the bill “comes mostly from foreigners here who do not profess the
religion of the Filipinos”. With reference to numerous resolutions and petitions being received by Assemblymen in
support of the bill, Assem. Pedro Sabido states these “can not be taken as conclusively expressive of public
sentiment on the question”. Assem. G. Z. Villanueva, Chairman of the Committee on Public Instruction, states the
bill will be tabled as Prof. V. G. Sinco has submitted an opinion declaring it to be unconstitutional.

Governor Frank Murphy of Michigan, former Governor-General and first High Commissioner, sends telegram to
President Quezon congratulating him on his appointing Assemblyman Ombra as Governor of Sulu and stating that
he is observing every move in the Philippines with profound interest and that he “longs only for the progress and
contentment of your people”. “This year I must return for a visit or it seems my heart will break. Bless you all.”

March 29. — Karl H. von Wiegand, head of the foreign service of the Hearts newspapers, states in Manila that the
Hearst papers favor the McNutt proposal but doubt its success “unless a campaign is made to explain it to the
American people, as many are fearful, the Philippines may draw the United States into a Far Eastern war”.

General Douglas MacArthur is given an honorary LI. D. degree by the University of the Philippines.

March 30. — Philippine Army troops from Camp Murphy return from Lanao. They left December 1 to reenforce the
Dansalan troops, destroyed some 91 cotas, and lost only one man in the fighting.

April 1. — The German Consulate in Manila, for unknown reasons, calls off the plebiscite on German-
Austrian anschluss to have been held on board the Hamburg -Amerika liner Burgenland outside the 3-mile limit
among German and Austrian residents here, and the ship does not leave the dock. It is announced later, however,
that some 300 Germans and Austrians took an oath of allegiance to Hitler.

Assem. Felipe Jose on the floor of the assembly criticizes Spanish residents in the Philippines for their activities
against the recognized government of Spain. Assem. Camilo Osias and others criticize Spanish Consul-General
Antonio Jaen Morente for his political and allegedly “communist” activities.

April. — Observers are reported to believe that silence is being preserved in respect to the re-examination proposal to
prevent the matter from being used as an election issue.

April 3. — The British aircraft carrier Eagle and the destroyer Diana arrive in Manila for an 8-day visit.

April 5. — The United Press reports that an exchange of personal communications between President Roosevelt and
Commonwealth President Quezon has solved the principal point of disagreement between the American and Filipino
members of the Joint Preparatory Committee as to the duty to be levied on Philippine imports into the United States
after independence and during the projected post-independence preferential trade period ending in 1960, on the basis
of a flat increase of 5% a year.

Meeting after luncheon at the Manila Hotel, members of the Committee on Public Instruction, in the absence of
Chairman Villanueva and Vice-Chairman Eugenio Perez, approve the religious instruction bill with amendments
claimed to remove its compulsory features. The action was taken despite the wish of Speaker Montilla,
communicated to the group by Floor Leader Jose Ozamis, that such action not be token.

April 6. — Malacanan announces that President Quezon has requested Resident Commissioner Quintin Paredes to
remain in Washington until the work of the Joint Committee has been completed. It has been reported that Paredes
reiterated his desire to resign as he wishes to run for reelection as Assemblyman from Abra. The other members of
the Assembly who are members of the Committee are also reported anxious to return.

April 7. — President Quezon states at a press conference that he does not understand it to be so that the agreement as
to the export taxes will kill the realistic re-examination program. He states that Washington and Manila were
confronted with a practical problem, while the re-examination proposal is still in the stage of discussion. He states
that while the agreement is not according to his personal preference, it is the “best that can be obtained under present
circumstances”. Opinion in Manila is that to impose a tariff increase of 5% a year will be of no practical value in the
end as many industries, even sugar, would be wiped out long before the tax reaches 100% in 1960.

April 8. — The Assembly takes a 10-day recess on account of Holy Week after efforts of advocates of the religious
instruction bill to have the Committee on Rules set a date for its discussion are frustrated by a lack of quorum,
oppositionists having left the room one by one. Assemblymen Maximo Kalaw and Maramba introduced a resolution
declaring that the Philippine people have not changed their attitude on independence or on the program outlined in
the Tydings-McDuffie Act; Assemblyman Jose introduced a similar bill. The Assembly approved a resolution
sponsored by Assem. F. Lavides petitioning Congress to either abolish the excise tax on coconut oil or lift the

prohibition against a government subsidy to the industry; about P36, 000,000 is annually credited to the Philippines
from this source.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary : The Philippines. Philippine Magazine, 35 (5), 217-218.

News Summary, Philippine Magazine: April 9 - May 11, 1938

News Summary
The Philippines

April 9. — Mayor Julio A. Antiporda of Binan, Laguna, 13 attacked with knives in the municipal building and expires
on the way to the hospital; the alleged killers are Delfin and Emilio Lopez who have been placed under arrest.

April 11. — American cement is imported to meet a local shortage for the first time since 1907.

April 12. — A “mystery fleet” of 22 foreign destroyers is reported as having been seen Sunday and Monday off the
Gulf of Davao by the Captain of an inter-island vessel. They flew no flags and steamed away at full speed when he
requested information as to their nationality. The authorities have been investigating since the report was first made
Sunday night, and the first report has been confirmed by various others.

April 13. — Numerous similarly-worded petitions and resolutions are being received at Malacanan and by the
National Assembly in favor of the bill requiring religious instruction in the public schools.

Philippine gold production in March amounted to P5, 089, 061. 01.

April 16. — The Philippine Army is reported organizing the projected Offshore Patrol. It is believed Major Rafael
Ramos, an Annapolis graduate, will be appointed chief.

April 17. — President Manuel L. Quezon orders the suspension of the police force of Binan.

April 18. — President Quezon addresses a letter to Manila Railroad Company employees who are threatening to
strike, advising them to present their grievances to the management or to him and warning them not to strike as this
would mean their automatic separation from the service. He states he is prepared to use the Army to run the railroad
if necessary to protect public interests as the railroad company is a government company and a public service
enterprise. He also writes to General Manager Jose Paez stating that he expects the Company to give an outstanding
example of how a corporation should deal with its employees.

April 19. — United States High Commissioner Paul V. McNutt tells the press he has received reports about the flotilla
seen off Davao but that these are not for publication. The Japanese Consulate in Manila issues a statement declaring
that according to the Japanese Foreign Office, there were absolutely no Japanese men-of-war in Philippine waters
recently.

The Assembly passes the P97, 126,800 four-year public works bill.

The management of the Manila Railroad is reported to have settled the threatened strike, granting the laborers
various demands and explaining matters not understood by them.

Cenon Almadin is arrested in connection with the murder of Mayor Antiporda.

April 20. — An unidentified submarine is reported to have been seen off Calayan Island, north of Luzon.

Manila Railroad employees in a mass-meeting protest against President Quezon’s denial of their right to strike, but a
walk-out is prevented by the cooler heads. It is decided to send a delegation to interview him on the supposition that
he is misinformed as to the facts.

April 22. — Another “fleet of 20 warships is reported to have been seen off the coast of llocos Norte and later off
Pangasinan.

April 25 . — The charge that a fund of P3.000.000 is behind the propaganda in favor of the religious instruction bill, as
reported in a newspaper, is referred by the Assembly to a committee for investigation.

April 26 . — In reply to a letter from Bishop James McCloskey of Jaro, Iloilo, stating that his “personal prestige is
endangered by your conduct in helping enemy Masons and Protestants who are opposing the bill on religious
instruction”, Vice-President Sergio Osmena states: “The government can not take into account in the administration
of public affairs what you call friends or enemies or make any distinction between Masons, Protestants, and
Catholics. . . Neither praise nor threats will have any weight in the consideration I am bound to give to all matters
that are submitted to me.” President Quezon writes Floor leader Jose Ozamis that in view of the use of his name in
connection with the religious instruction bill, he reiterates his desire to keep aloof from the discussion until "under
the Constitution, I am bound to act, namely if and when a bill approved by the Assembly comes before me for
approval or disapproval.”

April 27 . — A letter of President Quezon to Governor Tomas Confesor is published with respect to a statement made
by .the latter that “we are practically under a dominion status now”. President Quezon stating, in part: “This is not
so, either in theory or in fact. Dominion status has now a definite meaning in Constitutional as well as International
Law due to the well established political relationship between Great Britain and its dominions. The English colonies
enjoying this status arc self-governing in every respect and such limitations as there may be, if any . . . are of their
own free will and as they may have found to their interest to covenant with the Mother Country, which, in turn,
assumes a corresponding responsibility. In other words, a country possessing a dominion status as now understood
in International Law is as independent indeed as many of the so-called independent nations that have the name but
hardly the substance of the rights and powers of an independent nation. Such status is very far from being the
political status of the Commonwealth. Under the Independence Act, the internal autonomy granted us is restricted in
many vital aspects. I am bound to make this point clear for it is essential that, in discussing this question, our people
be properly informed as to our present status as compared with independence or a dominion status. I agree with you
entirely that any change in our political future should be discussed intelligently, freely, and thoroughly, before our
people are asked to vote thereon. They, and they alone, have the right to pass finally upon the supreme question of
their own future. But their decision should never be arrived at except after mature, cool, and thorough deliberation.”

Bishop McCloskey sends a telegram to Assemblyman Jose Zulueta stating that he regrets the publication of his
telegram to Vice-President Osmena as it was a “personal, friendly message, friend to friend”. “I have a right to
advise my friend that 1 have a knowledge from reliable persons that he tried to dissuade some of our Assemblymen
from voting in favor of bills pending in the Assembly, and I requested him to favor the billion religious instruction
as demanded by the immense majority of the people. This is a government of the people, for the people, and by the
people; the vast majority have made manifest their will and such will can not be justly disregarded.” Vice-President
Osmena tells the press the telegram was addressed to him as Vice-President and Secretary of Public Instruction and
dealt with matters involving his sworn duty.

The Cabinet decides on the abolition of the Manila Harbor Board and the transfer of its functions to the Bureau of
Customs.

April 28 . — Some 150 employees of the Manila Gas Company strike, it is said as a result of a conflict between two
unions represented in the plant. The management states the employees had no right to walk out until the case had
been brought before the Department of Labor.

April 29 . — President Quezon puts the Philippine Army in charge of the preservation of order in the province of
Bulacan in view of trouble on the Church haciendas and other labor disputes.

April 30 . — President Quezon accompanied by Mrs. Quezon and their children leave for a short vacation in
Hongkong.

May 3 . — A substitute religious instruction bill is passed on second reading without a record vote providing for
stringent penalties upon school authorities who obstruct in any way the religious education provisions in the
Constitution, or who fail to set convenient hours for such instruction which must be furnished on petition of parents.

May 4. — President Quezon in a special message to the Assembly proposes the abandonment of plans for the
organization of a new state police and advocates instead the separation of the Constabulary Division of the
Philippine Army to serve as the nucleus for such a system.

Another “mystery fleet” is reported to have been seen off Surigao for three nights from April 30 to May 2.

Bishop Gregorio Aglipay of the Aglipayan Church admits at an Assembly committee hearing that he is the author of
the article published in a local newspaper mentioning the existence of a P3, 000, 000 slush fund” back of the religious
instruction bill, and that the reference was based on reports he received from unknown people. He urges an
investigation

May 5. — A bill providing for certain compulsory patriotic opening exercises in the public schools is introduced.

May 6. — The Committee on Third Reading orders the religious instruction bill to be printed, the Chairman of the
Committee, Assem. Gregorio Perfecto, Floor Leader Ozamis. and other, dissenting.

May 7. — President Quezon returns from Hongkong without Mrs. Quezon who will extend her vacation for some
time longer.

The Manager of the Manila Gas Company announces that laborers who fail to return to work as allegedly agreed,
will be discharged.

May 8. — President Quezon officially inaugurates the Manila-Legaspi line of the Manila Railroad Company, with
High Commissioner McNutt as the guest of honor. The last rails connecting the Bicol branch with the main line
were laid November 17 and the first test train was run from Manila to Legaspi on January 25.

May 10. — President Quezon sends a number of special messages to the Assembly, among them one recommending
stricter and wider application of the 8 -hour labor law, and the rotation of the position of Chief of Staff of the
Philippine Army every three years.

Two British submarines arrive in Manila for a short visit.

Octave (“Pop”) Suares, well known in Manila’s bar and restaurant business, dies, aged 71.

May 11. — The U.S.S. Marblehead, lightcruiser, leaves Manila for Amoy, 700 miles across the China Sea, to relieve
Americans there endangered by the Japanese attack on the city.

E. D. Hester, Assistant Financial Adviser to the High Commissioner, returns from a six-months’ stay in the United
States. He tells the press that High Commissioner McNutt’s realistic re-examination proposal met with
extraordinarily favorable reaction in the United States and that people are more interested in domestic and
international policies than ever before.

Source : Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary : The Philippines. Philippine Magazine, 35(6), 273-274.

News Summary, Philippine Magazine: May 10 - June 9, 1938

News Summary
The Philippines

May 10 . — Frequent mass meetings of Japanese settlers at various scattered places in Davao lead to comment and
rumors that measures are being discussed for concentration in case of a war.

May 11. — Gen. Emilio Aguinaldo issues a statement opposing the bill providing for religious instruction in the
public schools, stating that the "influence of the Church has always proved pernicious to the state” and that the
members of the National Assembly should not close their eyes to history. “Memories of the persecutions by the
religious corporations are still fresh in the minds of the Filipinos.”

May 12 . — The religious instruction bill is passed on third reading by a vote of 48 to 24 with 20 members absent and
one voting “present”. Speaker Gil Montilla and Floor Leader Jose Ozamis vote “No”.

May 13 . — Secretary to the President Jorge B. Vargas writes Assemblyman Felipe Jose, basing his letter on a
communication received from High Commissioner Paul V. McNutt, that the Assembly does not have authority to
summon or request foreign consular authorities to appear before it to testify as to their acts or utterances even though
the official should offer such testimony voluntarily. He states it is the international practice that complaints against
the conduct of consular officials are dealt with by the chief executive of the government concerned and not by the
legislative branch of that government. Any complaint against a foreign consular representative should be submitted
to the High Commissioner (through the office of the President of the Commonwealth in case the complainant is in
the service of the Commonwealth government) for transmission to the Department of State together with a report on
the facts and recommendations from the High Commissioner. Final decision rests with the President of the United
States.

May 15. — Gen. James G. Harbord, (U.S.A. Ret.) Chairman of the board of directors of the Radio Corporation of
America, arrives in Manila from Australia where he attended the World Radio Conference. He will be a house guest
of President Manuel L. Quezon. He tells the press that there is a growing uneasiness in Australia and the
Netherlands Indies about Japan’s policy.

Capt. Thomas F. Dugan departs for the United States after serving some nine months as adviser to the President on
police methods.

May 16 . — Reported that President Quezon has given Resident Commissioner Quintin Paredes informal permission
to return to the Philippines. He will become a candidate for election to the Assembly. Joaquin (Mike) Elizalde is
mentioned for the post of Commissioner.

May 17 . — President Quezon takes General Harbord on a trip to the Bicol region.

May 19 . — The Assembly adjourns after an announcement that a special two-day session will be called by President
Quezon next week. The Commission on Appointments rejects the appointment of Judge Francisco Zandueta, senior
judge of the Court of First Instance of Manila, guided by President Quezon’s previous request that he be allowed to
withdraw the appointment.

The Japanese Consul-General in Manila states that the Japanese meetings held in Davao were for the purpose of
considering measures against the fall in the price of hemp.

May 20. — Col. Juan Dominguez is named acting Chief of the Constabulary and Provost Marshal General of the
Philippine Army vice Maj.-Gen. Jose de los Reyes.

May 21 . — President Quezon tells the press that Judge Zanduate while under investigation wrongfully sought to use
outside influences in the matter and that he wishes to purge the government of the “compadre" system. “Everyone is
interested in the maintenance of the independence of the judiciary . . . that independence must be maintained against
the executive and other branches of the government, but, most important of all, it must be maintained against private
influence. . .”

May 23. — Assem. Camilo Osias on the floor of the Assembly in special session denounces President Quezon and
Secretary of Justice Jose Yulo for their action in the Zandueta case as irregular, unjust, and undemocratic.

May 24 . — The Commission on Appointments rejects the ad interim appointment of Judge Modesto Castillo of the
Laguna Court of First Instance. President Quezon had renominated him last week after the Commission had failed to
take action on his appointment.

May 25 . — President Quezon at a legislative caucus censures Osias for his “unfair and unwarranted" criticism of him
and scores the other members of the Assembly for not rising to his defense, which, he states, prompts him “to
inquire whether he really has any friends in the Assembly”. Later the assemblymen pass a resolution expressing
confidence in the President and another resolution censuring Osias for his “clearly unjust, biased, and unjustified"
speech.

May 26. — Capt. Jose M. Cui, reserve officer in the Philippine Army, is appointed Governor of Cotabato. President
Quezon also creates the Philippine Airways Board to study the establishment of a comprehensive airway system,
composed of Capt. A. R. Crawford, U. S. Army, acting Director of the Bureau of Aeronautics, chairman, and Capt.
Mark Lewis, acting Chief of the Philippine Army Air Corps, Juan Ruiz, Director of Posts, and Gregorio Anonas,
Manager of the National Development Company.

The Board of Regents of the University of the Philippines confirms the appointment of Dr. Vidal A. Tan, head of the
Department of Mathematics, as Dean of the Northern Luzon Junior College to be opened in Baguio. Lope K. Santos,
well known vernacular writer, is appointed Assistant Professor of Tagalog Language and Literature.

The Executive Commission of the Nacionalista Party side-tracks a move to oust Osias from the Party.

Claro M. Recto informs the press that he is not counsel for Judge Zandueta as reported, but that he did render his
opinion, when asked, that judges when commissioned to another court do not need the approval of the Commission
of Appointments.

May 27. — Former Judge James F. Yeager dies in Manila, aged 58.

May 28 . — President Quezon appoints Assistant Director Celedonio Salvador Director of Education succeeding Dr.
Luther B. Bewley, the latter becoming technical adviser to the President on educational matters. Mr. Salvador
started as a classroom teacher and was successively Superintendent of Schools of Rizal, City Superintendent of
Schools of Manila, and Assistant Director of Education. Dr. Bewley has been connected with the Bureau of
Education since 1907 and was Director since 1919.

President Quezon appoints Chief Engineer Ambrosio Magsaysay Manager of the Metropolitan Water District,
succeeding Gregorio Anonas.

May 29 . — Osias in a speech in La Union attacks President Quezon for “unjust persecution and condemnation"
because he allegedly refused to say “amen" all the time to his wishes and “exercised freedom of conscience and
expressed his honest convictions". He again attacks the President for his “unjust dealing” with Zandueta and
declares his policies are tending toward “totalitarianism”.

May 31. — The Manila Daily Bulletin report as new threat of Japanese penetration through Japanese lumber
concessions around Dingalan Bay, east coast of Tayabas, a region considered of military importance as a possible
landing place and naval base site.

June 2. — President Quezon in a letter to Assem. Felipe Buencamino states he favors the sale of the government-
owned Sabani Estate to bona fide tenants on the installment plan.

June 3. — Dr. Jose Eduque, noted Filipino surgeon, dies, aged 54.

June 4. — President Quezon vetoes the religious instruction bill on the ground of unconstitutionality because (1) the
real subject of the bill is not stated in the title, (2) it restricts the discretionary power vested by the Constitution in
the public school authorities, and (3) it substantially changes the policy embodied in Sec. 928 of the Administrative
Code referred to in the Constitution. A Malacanan press statement declares that it is the “hope of the President that
religious questions will not be permitted to divide the people and cause conflicts of a serious character’. Churchmen
indicate the fight may be resumed, and Assem. Jose Zulueta proposes a change in the Constitution.

President Quezon approves the bill granting pensions ranging from P30 to P100 a month to all needy veterans of the
Revolution and abolishing the PI 000 monthly pension received by General Aguinaldo since 1920.

President Quezon leaves for a two-weeks inspection trip to the South.

June 5. — Father Jose Coronas, S. J., distinguished scientist and former head of the Meteorological Division of the
Weather Bureau, dies in Manila, aged 67.

June 6. — Mayon Volcano is reported in eruption with people in the vicinity fleeing. The Philippine Army is ordered
to stand by.

Public schools throughout the Philippines open, but the four Manila high schools remain closed as a result of a
dispute between Mayor Juan Posadas and the Municipal Council over tuition fees.

Lightning strikes two small neighboring houses in Malamic, Naguilian, crowded during a rain storm with people
attending a wedding, and eighteen are killed either by the lightning bolt or by the fire that followed, the bride and
groom, however, escaping.

June 7. — Manila officials compromise on an annual high school tuition fee of P15 for all four years, replacing the
former fees of P6, P8, P10, and P12, respectively, despite city-wide protest.

Secretary of the Interior Elpidio Quirino leaves Laoag for the Batanes Islands to investigate reports of extensive
land-buying by a Japanese there.

June 8. — Mayon continues to belch forth fire and smoke and quantities of lava. Concentration camps have been
established for some 20,000 people who have fled from their homes. Father Miguel Selga of the Weather Bureau
states there is no danger of a violent eruption. President Quezon, on the scene, also encourages the people and
speaks on social justice.

June 9. — Pedro Abad Santos, socialist leader, states that the people will hold lawful meetings and demonstrations
despite President Quezon’s recent order to town mayors of Pampanga and Tarlac that meetings of a subsersive
nature must not be permitted. Constabulary forces in the region have been strengthened and some 200 people have
already been arrested.

The Siamese training ship Maeklong arrives in Manila for a 5-day stay, bringing 1 1 Siamese students who will
enroll in the University of the Philippines.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary : The Philippines. Philippine Magazine , 35 (7), 321-322.

News Summary, Philippine Magazine: June 12 - July 14, 1938

News Summary
The Philippines

June 12. — Judge Pedro Ma. Sison of the Manila Court of First Instance, dies aged 53.

June 13. — Socialist leader Pedro Abad Santos states that the Pampanga authorities are resorting to police and
judicial terrorism and that this will not help the situation, but make it worse.

Secretary of the Interior Elpidio Quirino returns to Manila from the Batanes Islands with a Japanese flag which he
states was confiscated when displayed dining a church festival there, but discredits reports that lands are being
acquired by Japanese.

June 15. — Four Siamese submarines, recently purchased in Japan, visit Manila.

June 17. — A flotilla of 5 submarines and the tender U. S. S. Canopus return from a goodwill tour to the Netherland
Indies. The ships left April 26.

June 19. — President Manuel L. Quezon comes to the end of the period allowed him to act on the bills passed during
the regular session of the National Assembly, having vetoed 44 of the 105 measures passed, actually signing only 58
and allowing 3 to become law without his signature. Of the 34 bills passed during the subsequent special session he
has so far approved 24. A number of administration money bills were vetoed because of the necessity of establishing
a reserve to facilitate economic readjustment under the plan proposed by the Joint Preparatory Committee on
Philippine Affairs.

Resident Commissioner Quintin Paredes, Assemblyman Jose E Romero, and Benito Razon, members of the Joint
Committee, arrive in Manila from the United States. They state that if the recommendations of the Committee are
adopted, the economic relations between the United States and the Philippines will be stabilized and the transition to
independence made much easier. “Freed from the spectre of ruin and uncertainty, our country can with confidence
develop itself within the scope of the liberalized plans submitted. . . Better plans could have been evolved, but the
situation naturally called for compromise. . . President Roosevelt with positive acts has shown clearly his sincere
interest and friendship toward the Filipino people. He is moved by a desire to help us. The sense of justice and the
practical turn of mind of the American people will not permit them deliberately to destroy the great humanitarian
work in the Far East of which they are proud. . . And in the Philippines, working in unison with President Roosevelt,
the destiny of the nation can not be in better hands than in those of our President whose statesmanship is
acknowledged in all parts and to whose wise direction and advise is due whatever our mission accomplished.”

June 20. — President Quezon addresses a letter to the authorities of Pampanga describing as “illegal and foolish” a
recommended ordinance declaring that with certain exceptions “any two or more persons may gather or group
together or assemble only upon the written permission of the municipal mayor subject to the approval of the
provincial governor”. The President states that his remarks to Pampanga and Tarlac officials during a recent
inspection trip referred to “gatherings of large numbers of people for the purpose of preventing citizens from
attending to lawful pursuits or of coercing them through positive acts or through intimidation into joining
organizations, especially those of doubtful legality, against their will or when such gatherings are likely to cause
public disorder or alarm. . .”

June 21. — Leo Fischer retires after 37-1/2 years in the government service, chiefly in the Translating Division; he
will make his home in Long Beach, California.

June 22. — Commissioner Paredes stresses the need of a Philippine information service in the United States.

June 23. — President Quezon, completes disposal of the 34 bills passed during the special session of the Assembly,
having signed 29, vetoed 4, and allowed one to become law automatically. Among the bills signed is one converting
the Constabulary unit of the Philippine Army into a national police organization, separating it from the Army, this
bringing to an end the attempt to convert the municipal police forces into a state police. Maj.-Gen. Basilio J. Valdes
has been designated to head the Constabulary temporarily.

President Quezon issues a press statement referring to the hearings on proposed tax measures by a committee of the
Assembly, declaring that if the business communities of the country “wish to accomplish some positive results they
must make constructive suggestions in a spirit of helpfulness and not obstruction. . . The talk that these tax measures
are going to prevent capital from coming into the Philippines and induce that already here to get out, carries no
weight. There is no country in the world where capital and the rich bear less burden of taxation than in the
Philippines. We have always avowed our desire to see capital come to the Philippines, but let no one believe that
capital which is selfish and not willing to pay taxes is of very much use to us. The government is affording
protection to business and rendering it service. Capital, in turn, must support the government. A leading
representative of several business concerns is quoted as saying that the government of the Commonwealth needs no
additional revenues. Everyone knows we have millions of children who are deprived of elementary instruction for
lack of funds to support needed schools. Most of our towns have no good, clean drinking water, hospitals, etc. If we
had ten times as much income as the government now has, we could spend it all for the well-being of our people.”

A conference at Malacanan between President Quezon and Assem. Camilo Osias starts rumors of a possible
reconciliation.

Assem. Romero, speaking before the Manila Rotary Club, states: ‘We might just as well reconcile ourselves to the
idea that political independence for our country means the elimination of protection of our goods in the American
market. We can not eat our independence cake and have the cake of American trade preference, too. . . . However,
there seems to be too much of an idea that the twenty-year transition period is one of liquidation rather than
adjustment. . . The process of adjustment will not be a painless one, but there is no reason to exaggerate its
difficulties.” In closing, he declares: “We have re-examined the economic problem and it will behoove us all to
proceed to a similar re-examination of the many other perhaps more serious and difficult problems in connection
with political independence.”

A pastoral letter drawn up by a number of Roman Catholic archbishops and bishops in Cebu on June 16 and 17 is
published. It declares that President Quezon’s veto of the religious instruction bill has “aroused us to greater effort”,
that “only the Supreme Court can pass a final decisive verdict” on the constitutionality of the bill, and that, anyway,
the “Constitution should be adapted to the will of the people and not the will of the people to the Constitution”.
Parish priests are directed to “use opportune severity towards those fathers and mothers of families who are
disobedient, denying them the sacraments until they withdraw their children from such institutions (“colleges and
institutions run by Protestants and other sectaries ... in which youth run an imminent risk of losing their faith and
being perverted”) and denying the sacraments to the children themselves as long as they remain in such institutions”.

June 24. — President Quezon issues a press statement declaring he is amazed by the boldness of the Roman Catholic
hierarchy and that, while he had thus far ignored charges made that it had instigated and was behind the movement
for the enactment of the religious instruction bill, the new pastoral letter is evidence that we face “one of the most
menacing evils than can confront the government and people of the Philippines, namely the interference of the
church in the affairs of state. . . It should be unnecessary to remind the ecclesiastical authorities in the Philippines
that the separation of church and state in this country is a reality and not a mere theory, and that as far as our people
are concerned, it is forever settled that this separation shall be maintained as one of the cardinal tenets of our
government. . . Any attempt on their part to interfere with matters that are within the province of the government
will not be tolerated. . . If the ecclesiastical authorities desire to have the government respect their rights and afford
them protection in the free exercise of their religion, they must not only abide by the laws and the lawful orders of
the government, but they must also acknowledge and respect the principle of the separation of church and state. . . .
When it comes to expressing the will of the people as a political entity on any matter concerning legislation or
government measures, the Catholic bishops, some of whom are not Filipinos, are assuming too much. . . .” He states
that the church authorities are blind to the lessons of history and that, being himself a Catholic, he is no less
interested in preserving the independence of the church from the state as he is of preserving the independence of the

government from the church. He declares it is the lack of Sunday schools and catechists that is mainly responsible
for the “deplorable ignorance of their own religion that is found among Catholic youth", that there are many towns
that have no parochial schools or even priests, and that “it seems the church authorities want to blame the
government for their own negligence or inability to perform their duty to teach the doctrines of their faith". He
points out that classes in religious instruction under the present law have been increasing and that on Saturdays and
Sundays, when the public schools are not used for school purposes, they may be used for religious instruction if this
is requested. “It is my earnest conviction that the Filipino people will not heed the call to drag them into religious
controversy. . . .”

President Quezon appoints Solicitor-General Pedro Tuason, and Judges Hermogenes Reyes and Marceliano
Montemayor, both of the Court of First Instance, to the Court of Appeals.

The Cabinet, at the instance of Vice-President Sergio Osmena, adopts a resolution, approved by President Quezon,
permitting government employees who are not heads of departments, bureaus, or offices, to teach not more than one
hour a day.

Maj.-Gen. Valdes announces the appointment of Col. Juan Dominguez as Assistant Chief of Constabulary.

Jorge L. Araneta, prominent Negros capitalist, acquires control of the KZRM Radio Manila and KZEG broadcasting
stations, according to an announcement.

June 25 . — President Quezon boards a Japanese freighter, the S.S. Kongo Mam. for Kobe, accompanied by Maj. H.
Hutter, Medical Corps, U.S.A., Assem. Felipe Buencamino, Maj. Manuel Nieto, Tomas Morato, and H. Naeyama,
and several others, reportedly to visit a Japanese health resort for a rest.

Assemblymen Eugenio Perez, Gregorio Perfecto, and G. Z. Villanueva introduce a resolution expressing
concurrence with President Quezon’s veto of the religious instruction bill. Father Gregorio Villaceran of Manila
states in a sermon that men ordained to the priesthood do not lose their citizenship or civic personality and have as
much right as any other citizen to deliberate on government and participate in public measures, especially those
affecting the church.

June 26 . — Archbishop Gabriel M. Reyes tells the press that the Cebu pastoral letter was not written to challenge the
President but to urge the faithful to continue cooperating with their ministers in the work of religious instruction and
declares that under a democratic system, the bishops have a right to do so.

June 28 . — Commissioner Paredes tells University of the Philippines students that the Joint Committee’s report if
adopted will fully protect Philippine interests. “We will get justice from Congress and its leader, President
Roosevelt — a man of great heart, who is the champion of all liberties in the United States.”

June 29. — Prof. Lloyd Preston Rice of Dartmouth College, New Hampshire, assumes office at Malacanan as
financial and economic adviser, succeeding Dr. Frederic C. Howe who left the country some months ago.

June 30 . — Reported that President Quezon has temporarily suspended all expenditures of public works funds under
the 4-year plan.

July 3 . — The Rev. Samuel S. Stagg says in a sermon that the religious instruction bill was part of an effort to “kill
democracy and declares that “devout Roman Catholics who accept the political philosophy of the hierarchy as laid
down by papal pronouncements are more subversive and seditious than the communists”.

July 4 . — Units of the U. S. Army, the Philippine Scouts, and the Philippine Army march in a Fourth of July military
parade, the largest for many years. U. S High Commissioner Paul V. McNutt delivers an eloquent address in defense
of democracy as against absolutism, and, decrying patriotism of the lesser variety, calls for a new and continuous
patriotism. Speaking of democracy in the Philippines, he states “whether this will be progressively adjusted to meet

changing circumstances of succeeding generations remains to be seen. Whether the Philippines will continue as a
part of the American government depends upon mutual agreement”. In the evening, U. S. Navy vessels in the Bay
stage a searchlight display.

J. Weldon Jones, financial adviser to the High Commissioner, and one time acting High Commissioner, is elected
Commander of the Philippine Department of the American Legion. The Legionaries adopt a resolution endorsing
High Commissioner McNutt’s “realistic re-examination” proposal.

July 7. — The Philippine Bank of Commerce, capitalized at P2,000,000 of which P500.000 has been paid in, opens in
Manila. Miguel Cuaderno, former Vice-President of the Philippine National Bank, is President.

July 9 . — The National Rice and Corn Corporation issues a warning to millers and merchants to keep prices down as
it is ready to undersell them if prices continue to rise. It points out that prices of sugar, copra, hemp, tobacco, and
other products have been decreasing.

July 11 . — The Supreme Court dismissed the cross-complaint of Judge Francisco Zandueta against Secretary of
Justice Jose Yulo.

The M. P. Tranco buses in Baguio suspend operation because of a strike. Additional constabulary have been sent to
the scene to protect the Company’s property. The case will be submitted to the Court of Industrial Relations.

July 12 . — Professor Rice, new Malacanan adviser, states at the tax bill hearings that the proposed tax on capital is
not high and scouts the contention that it would discourage the inflow of capital, as claimed by various spokesmen
for business.

Judge Jose M. Paredes sentences Emilio and Delfin Lopez and Cenon Almadin to life imprisonment for the murder
of Mayor Julio Antiporda of Binan, Laguna, on April 9. They will appeal.

July 13 . — Spokesmen for the Philippine business interests state at the tax bill hearings that in view of the unsettled
world conditions and present business difficulties this is not a propitious time to increase taxes, especially as no
emergency exists.

July 14 . — Announced that President Quezon has ordered the transfer of P5, 500,000 of the funds of the National
Development Company for the initial capitalization of two new firms, the National Hemp Corporation and the
Notional Warehouse Corporation, one to aid the hemp industry and the other small farmers.

The United States

June 10 . — Southern congressmen cause a deadlock in the conference on the wages and hours bill which has already
passed the Senate and House in different forms. The House rules committee favorably reports a resolution providing
for the creation of a special committee to investigate charges of the existence of a monopoly in radio broadcasting.

June 11 . — Secretary of State Cordell Hull reveals that the government has moved to discourage the sale of
American airplanes to Japan because of Japanese bombardment of civilians. The sale of planes to both the Spanish
loyalists and rebels has already been embargoed.

June 12 . — The Senate and House conferees end a ten-day deadlock and agree on a flexible wages and hours measure
which provides for a maximum working week of 40 hours and a minimum hourly wage of 40 cents to be reached in
7 years, and beginning with a minimum wage of 25 cents and a 44-hour week, with certain exceptions which are
considered a victory for the Southern congressmen.

June 16 . — The 75th Congress adjourns its sessions during which record peace-time appropriations totalling
$21,656,174 were approved, about $5,691,000,000 of which was for recovery and relief.

June 17. — Sen. Key Pittman introduces a resolution condemning Japan’s bombings of civilians in Canton. Sen.
Hiram Johnson stating the resolution is “meaningless”. Sen. W. H. King asks whether he would be ready to support
a resolution severing diplomatic relations with Japan, declaring that he himself would support such a resolution.
Johnson replies that such a resolution would not receive general support because it would lead to the “logical
conclusion — war”.

The State Department reveals the government has rejected Germany’s suggestion that it is not responsible for
Austria’s foreign debts. Austria’s debt to the United States totals $24,000,000 floated by Austrian municipalities for
utility developments.

Sen. Royal S. Copeland, New York Democrat, dies, aged 69.

June 18 . — The State Department inaugurates a campaign to make the people “foreign-policy conscious” through
press releases elaborating on recent official speeches and diplomatic communications in order to obtain the people’s
moral support and to give weight to the American position in respect to world problems.

June 19. — Rep. T. O’Malley (Wisconsin) states he has received many protests from Filipinos against the reported
appointment of Joaquin M. Elizalde as Philippine Resident Commissioner and that if President Quezon appoints him
it will be a big mistake and he will challenge Elizalde’s right to sit in Congress.

June 20 . — A “high administration official” tells the United Press that Britain and the United States are preparing
jointly to choke Japan’s credit until it will agree to observe the integrity of American and British investments in
China and uphold the Open Door policy. Confidential information is said to have been received that Japan is
planning to establish economic barriers in North China similar to those in Manchukuo. The Finance Section of the
Department of Commerce issues a warning to American exporters not to accept orders from Japan unless they are
accompanied by guaranteed and irrevocable letters of credit.

A Federal grand jury in New York City names Germany as a country sponsoring widespread espionage within the
United States; 18 persons have been charged with conspiring to obtain information as to aircraft plans, naval vessels,
and coastal armaments.

A trainwreck in Montana caused by the collapse of a bridge after a sudden flood, kills nearly 100 people.

Charles P. Jarman, former Manila resident, dies at Palo Alto, California, aged 64.

June 21 . — President Franklin D. Roosevelt signs the $3,750,000,000 relief measure. He states at a press conference
that the national income for 1938 will exceed $60,000,000,000, according to Department of Commerce estimates.

June 22 . — Secretary of War Harry H. Woodring states in an address that the world powers “should speedily agree to
limit attacks by aircraft to clearly defined military objectives”.

The Maritime Commission announces it will advertise for bids to rehabilitate American Pacific shipping under a 24-
ship, $100,000,000 program.

Joe Louis, American negro world -champion heavyweight boxer, knocks down the German challenger Max
Schmeling 3 times in the first round and the latter’s second throws in the towel as the referee reaches the count of 8
exactly 2 minutes and 4 seconds after the fight started. Reported later that Schmelling suffered a fracture of a small
bone extending from the vertebra below the right kidney, from one of Louis’ early punches. Gross receipts of the
fight, staged in the Yankee Stadium, New York, of which Louis gets $320,000 and Schmelling $160,000 amount to
$1,015,095. The gross attendance was 72,000. Schmeling’s wife in Berlin receives sympathetic messages from
Fuhrer Adolf Hitler and flowers from Propaganda Minister Joseph Goebbels.

June 23. — American advisers and political supporters of High Commissioner McNutt are reported to be urging him
to restrain from further emphasizing the necessity of a “realistic re-examination" of Philippine relations, believing
that the plan is not popular in the United States and also because it is inadvisible to launch further discussion of the
political aspects of the problem coincident with the coming reexamination of the economic relations by Congress.

June 24. — In a radio “fire-side chat", President Roosevelt attacks business reactionaries and blames the current
depression on mistakes of labor, industrial, and government leaders. He criticizes Congress for failing to enact the
government reorganization bill and the railroad aid measure, but says that the 75th Congress nevertheless achieved
more good for the country than any congress since the World War and the Spring of 1933. He states the defeat of the
court reorganization bill was a "lost battle which was won" as the Supreme Court attitude on constitutional questions
has now “entirely changed” and this is evidence of the Court’s willingness to collaborate with the two other
branches of the government to make democracy work. He urges labor and industrial groups to unite in resisting
wage cuts which reduce the nation’s purchasing power. He states that labor leaders, however, have gone too far in
“using methods which have frightened well-wishing people”.

Reported that President Roosevelt has decided to keep the 4 battleships to be built under the 1938-9 program down
to 35,000 tons, this being understood to indicate that reports that Japan is building ships of larger tonnage have not
been confirmed.

June 25. — Assistant Secretary of State Francis B. Sayre states in a public speech that the policy of the German
government will lead to the degradation of the German people.

June 29. — J. P. Kennedy, Ambassador to Britain, returns to England on the Normandie. J. M. Elizalde, Philippine
delegate to the London Sugar Conference, is on the same ship.

June 30. — An administration official states that 4 battleships of 30,000 tons will be built before the government
avails itself of the new 45,000-ton limitation. The Navy arranges today for the construction of 6 submarines of 1,300
tons, costing $30,000,000.

The New York World-Telegram states that according to a government source, Germany and Japan have obtained
plans for 5 major American destroyer types, including improvements in hull design, propulsive elements, and fire-
control apparatus.

President Roosevelt speaking before the National Education Association declares that “education must be kept
intellectually free" and criticizes the dictatorships and the suppression of art and culture in the fascist countries.

July 1. — The business situation is reported to be brightening, and many stocks are quoted in New York at the highest
prices for the year.

One of the huge new "flying fortresses” crosses the United States, leaving March Field, Riverside, California, at
8:41 a. m., and landing at Langley Field, Virginia, at 8:01 p. m., the flight of 2,317 miles being made at altitudes
ranging from 13,000 to 16,000 feet and the 8 men aboard using oxygen masks. A War Department official states the
flight is additional evidence that “our planes and engines are the best”.

July 4. — The War Department discloses plans to shift the general headquarters of the Air Force from Langley Field
to Scott Field, Illinois, as this will make possible quicker movement to both coasts.

July 5. — The War Department announces that Brig. -Gen. Charles Burnett, Chief of the Bureau of Insular affairs,
will visit the Philippines in October.

July 7. — President Roosevelt entrains for a transcontinental trip and will later board the U.S.S .Houston for a visit to
South American waters.

The United Press Washington correspondent reports that tentative plans have been drawn up for the establishment of
powerful military and naval air bases in the Philippines if insular independence is delayed. In the event of a possible
prolonged political relationship, strategists have decided the best temporary, formidable defense of the Islands
would be a concentration of aerial power. Naval bases and military forts would be vastly more expensive.

The Lockheed Aircraft Company announces it will start production on a British government order for 200
reconnaissance planes, valued at a total of $17,000,000.

July 8 . — President Roosevelt in a speech at Marietta, Ohio, states that America is on a “mental migration, seeking
new fontiers of social and economic security”. “The American people are not afraid of their own capacity to choose
forward-looking representatives to run their government. They want the same cooperative security and have the
same courage of achievement in 1938 that they had in 1788”.

July 9 . — Benjamin N. Cardozo, Associate Justice of the Supreme Court, noted liberal jurist, dies following a long
illness, aged 68.

July 11 . — Howard Hughes, rich American sportsman, and 4 companions leave New York on a flight around the
world, arriving in Bourget, France, in 16 hours, 38 minutes, breaking all records. Col. Charles Lindbergh took 33-
1/2 hours in 1927. Hughes is using a Lockheed transport monoplane.

July 12 . — Revised budget estimates for the current fiscal year forecast a net deficit of $3,984,887,000, up
$2,525,639,887 compared to the previous estimate. President Roosevelt states in his message that he warned
Congress he would not hesitate to request additional funds if business failed to improve, and “business not only
failed to improve, but is gradually becoming worse. This made it necessary to request additional appropriations for
work relief and a program of public works not only to aid the unemployed but simultaneously to give a needed
stimulus to business”.

The Indiana state democratic convention endorses McNutt as nominee for the presidency. “With him, our party can
proceed with full consciousness that every promise will be kept, each platform declaration respected, and the best
interests of the people conserved and advanced”. Differences between Sen. F. Van Nuys and the party leaders in the
State, arising from his opposition to the court reorganization bill, have been patched up also, it is reported, in the
interest of Indiana party unity.

Hughes and his party arrives in Moscow where he is met with the wildest acclaim.

July 13 . — Hughes lands at Yahutsk and takes off for Fairbanks, Alaska.

July 14 . — Hughes and his party reach Floyd Bennett Field, New York, stopping briefly at Mineapolis from
Fairbanks for refueling, circling the world in a little over 3 days, 19 hours, of which time only 61 hours, 7 minutes,
were spent in the air, covering, in that time, a distance of 14,886 miles at an average speed of 161 miles an hour
Wiley Post flew over the same route in 1933 in 7 days, 18 hours, 49-1/2 minutes at an average speed of 83 miles an
hour.

Other Countries

June 6 . — The famous Jewish psychologist, Sigmund Frued arrives in London, accompanied by American consular
officials, having received permission to leave Austria last Saturday; he states he has no plans and merely desires to
end the few days left to him in peace and quietness in England — he is 82.

June 7. — Japanese bombers raid Canton during the night, following raids both morning and afternoon; casualties are
high and bodies litter the streets. The French-owned Doumer Hospital was badly damaged yesterday, the operating
and X-ray rooms being destroyed, and a Red Cross ambulance was machine-gunned and all its occupants killed. Sun
Yat Sen University has also been demolished; also the Peiching Middle School, where many students were killed

and wounded. E. Lockwood, Y.M.C.A. Secretary, states, “Unless something is done to deter the Japanese, countless
thousands of unarmed civilians will be killed". An American physician states, “We, American physicians of Canton,
have been witnesses of brutal massacre of Chinese civilians, thousands of whom we have treated with our own
hands, and we urgently appeal to Americans to apply measures to halt these daily massacres”. Vice-Minister of
Foreign Affairs Kensuke Horinouchi is reported to have rejected French protests against the bomging of Canton,
holding that it is not a defenseless city but a well -fortified Chinese military base. The Japanese spokesman at
Shanghai states that air raids will continue with “even greater vigor” in order to make the Chinese realize the futility
of resistance. Peking officially adopts “friendly time” ( Tokyo mean time) as a measure of “convenience”.

June 8 . — Rebel forces reported to be within artillery range of Castellon, which guards the approach to Valencia.
Rebel headquarters at Burgos issues a press statement declaring that the “government does not guarantee the safety
of neutral ships during their stay in ports of a nation at war. Such ships are no more than common smugglers”.
During the week-end 3 more British ships were bombed and 6 Britons killed; 12 foreign ships have been damaged or
sunk during the past 2 weeks. The Giornale d ’Italia states Italy may be “obligated to send more volunteer Fascist
troops to Spain unless France checks the growing arrogance of its communists.”

Despite Tokyo denials, the Hongkong China Mail reports that Japan is converting Amoy into a modern naval base
which will exceed the Formosa base in importance.

June 9 . — Estimated that some 30,000,000 people have been driven from their homes by the wide sweep of the
fighting in China. Generalissimo Chiang Kai-shek states that “Chinese resistance will continue as long as there is
Japanese aggression; the period can not be measured in terms of months or years. China’s fighting strength is
increasing as the war goes on.”

Spanish rebels bomb two more ships, a French freighter, killing 5 men and wounding 10 others, and an Irish
freighter.

June 10 . — The Peking Yung Pao, organ of the Japanese army, editorially advises Canton civilians to “obey our
friendly army and sever all relations with the Kuo mintang -Communist government if they want to be safe from
bombs”. Asked whether the bombing is political rather than military, the Japanese spokesman in Shanghai states that
“it is military in the widest sense”.

An Italian-made Savoia plane sinks 3 more ships in Spanish waters, 2 of them British. Thirty French planes begin a
24-hour patrol of the Spanish border.

June 11 . — Hongkong reported struggling to cope with the influx of half a million Chinese refugees from Canton.

A Japanese company is reported to have purchased the wreck of the S. S. President Hoover for 500,000 yen plus
additional payments in accordance with the tonnage of scrap metal recovered.

Former Foreign Minister Anthony Eden bitterly scores the policy of Prime Minister Neville Chamberlain, declaring:
“Any optimistic view of the international situation is unfounded. The signs of the times are only too easy to read. If
we avoid catastrophe it can only be by a gigantic national effort to show those nations which still believe in power
politics that force is a weapon that can not profit the user”.

The loyalist defense north of Castellon de la Plana collapses following the fall of Albocacer.

June 12 . — Japanese naval authorities send note to foreign consular officials requesting that warships and merchant
vessels be removed from the area between Wuhu and Hukow in preparation for an offensive up the Yellow River
and that the ships be painted “scarlet or some other color” as the experience of Japanese fliers is that it is difficult to
recognize national flags from the air. Appalling floods between the Yellow and the Hwai rivers have submerged
some 1000 villages in eastern Honan and the Japanese are reported still cutting dykes by aerial and artillery
bombardment to drown the Chinese defense units east of Chengchow and to protect their own flank during the

advance against Hankow. A new Russo-Chinese agreement is rumored, presumably for fresh military aid to China,
and it is also said that French advisers will replace the recalled German advisers; a military supply line from French
Indo-China into South China will be kept open, it is said.

Rebel planes raid Sagunto, dropping more than 300 bombs. Said in Rome circles that General Francisco Franco is
bombing open cities to break the morale of the loyalists as a result of pressure from Hitler and Premier Benito
Mussolini to bring the war to a close by autumn.

Rudolf Hess, member of Hitler’s Cabinet, states that the Czechs are a “menace to the peace of the world. The world
has none to thank but the Fuhrer for preserving peace in the face of the Czechs’ dangerous game”.

June 13. — Rear-Admiral Harry E. Yarnell rejects the Japanese suggestion that American warships be painted
“scarlet or some other color” and informs the Japanese naval officials that "it is not considered the Japanese navy’s
warning would relieve Japan in the slightest degree of any responsibility for damage or injury to U. S. warships,
nationals, or property. The U. S. Navy retains complete freedom of movement throughout the Yangtze River and
therefore will proceed to any point where Americans are endangered. Movements of U. S. warships within any
specified danger will be communicated to Chinese and Japanese officials and efforts will be made to avoid
unnecessary exposure in danger zones; however, the evacuation of American nationals from the Hankow area is of
paramount importance and will be carried out. U. S. Navy vessels on the Yangtze are painted white and have large
American flags painted on the awnings and their nationality should be apparent to any aviator flying at an altitude of
several thousand feet.”

Premier Milan Hodza of Czechoslovakia interprets the results of the last elections as constituting approval of his
national unity program based on his minority reform statute. Konrad Henlein, Sudeten German leader, states that his
party having received 90% of the votes in the German areas makes it clear that his demands must be made the basis
of negotiation.

June 14 . — Loyalists in evacuating Castellon de la Plana set fire to the ammunition dumps and gasoline supplies as
the rebels enter the city which open the way to Valencia.

June 15 . — The Japanese naval spokesmen in Shanghai says it is Japan’s intention to take the whole of South China
but that the “British border will be respected; there is no question of menacing the leased territories”. The Tokyo
press hints that Hainan Island may be occupied unless France stops the shipment of military supplies to China. The
Yellow River flood now covers an area of 500 square miles, inundating 2000 villages, driving some 303,000 people
from their homes, and drowning some 50,000, according to latest estimates. Japanese are now assisting in attempts
to stem the flood and the main body of Japanese troops has fallen back to higher ground around Kaifeng. They deny
they cut the dykes. Communists and armed workers are reported to be threatening to take over the defense of
Hankow unless Chiang Kai-shek will agree to defend the city at all costs; they recently criticized the abandonment
of the Lunghai railway zone without one really serious battle.

June 16 . — Valencia reports state that Castellon de la Plana has been bombarded by warships that appeared to be
German. Rebel planes sink another British and 2 French vessels in Valencia harbor and a number of other ships are
damaged.

June 17 . — Continuing rains threaten China with the worst flood since 1855.

Reported that British and Australian representatives in London are discussing a possible three cornered trade pact
between Britain, Australia, and the United States.

A new anti-Jes drive in Berlin results in the arrest of over 1000, including men in every profession. Jews are being
shoved over the border without passports, money, or clothing. Reported the Nazis are demanding a “ransom” of
£2,000,000 from Baron Louis de Rotschild, Austrian banker, for his release from prison, the amount fixed being
alleged to be the obligations of an Austrian bank of which he was president and which failed in 1933.

June 18 . — Foreign Minister Gen. K. Ugaki states that hostilities in China are certainly nearing an end and that
though Japan is not willing to deal with the Chiang Kai-shek regime at present, "if there is any serious change in the
situation, Japan may reconsider its attitude”. The Japanese-sponsored Peking government issues an impassioned
appeal for peace, begging the people to reflect on the year’s events and realize their mistakes. The Japanese have
“sacrificed much” and the Chinese people have suffered enormous losses. Even if the war were soon ended, it will
take a century, it declares, to recuperate. “The initial mistake was the Kuomintang’s, it ran amuck, but the people
bore the brunt of the scorched earth policy of the Chinese armies, and the breaking of the Yellow River dykes by the
Chinese soldiers was the last word in madness. . .” A Japanese military spokesman states that some 700,000 people
are threatened by the floods, of which 100,000 are beyond rescue. The Japanese army is taking care of some 200,000
people, he states. E. Baker, Director of the China International Famint Relief Commission, states that 50,000,000
Chinese will be homeless within a month if China’s worse flood in 83 years is not quickly controlled. The Japanese
Foreign Office spokesman states that the French Ambassador admitted that French interests have signed a contract
for the building of a railway from French Indo-China into China. Japan rejects a Russian note urging the
discontinuance of "indiscriminate air bombings in China”, declaring that the Soviet is biased and has no right to
make such a representation.

Mussolini is reported to have asked Britain to consider effectivating the Anglo-Italian agreement despite the Spanish
complications, apparently having abandoned hope of an early nationalist victory.

Jews in Germany are taking refuge in foreign consulates as their shops are looted and wrecked. They find it is
difficult to get food because gentiles are afraid to sell to them.

June 19 . — Furious fighting reported raging between Ankang and Hankow. Chinese claim to have sunk at least 4
Japanese warships near Anking, 100 miles up the Yangtze. Japanese are bombing on numerous fronts as far south as
Hainan island.

Chamberlain reported to have definitely rejected Mussolini’s proposal to ignore the Spanish volunteer issue in
effectivating the Anglo-Italian agreement.

Some 50 persons are injured in a clash between jobless and the police in Vancouver B. C, when police enforced an
eviction order at the post office and an art gallery held by the unemployed in a sit-down siege.

June 20 . — Ugaki warns foreign embassies and legations in Tokyo to take measures for evacuation of their nationals
in an area extending some 700 miles inland from the China coast.

Announced in the House of Commons that a commission of British, Swedish, and Norwegian experts will shortly
leave for Spain to determine whether aerial bombardments have been directed against exclusively military
objectives. The Barcelona government has promised to cooperate, but Franco has not committed himself. Revealed
that the United States rejected an invitation to participate.

June 21 . — Japanese transferring men and equipment from the flood -soaked Lunghai front to the Yangtze to
strengthen the drive on Hankow.

French government seals the Pyrenees frontier against further arms shipments to the Spanish loyalists, leaving them
dependent on supplies from ships able to run the coastal blockade. Said in Paris that both sides in the civil war have
recently received great quantities of war material sufficient to carry the fighting through another winter.

June 22 . — Foreign Office spokesman states that Japanese business circles believe that Washington report of a
proposal to choke credits is a "trial balloon.” The Japanese bomb Swatow, important port between Shanghai and
Hongkong and land forces there. Canton is again bombed.

Rebel war planes bomb and sink 2 more British vessels in Valencia, bringing the total of British ships attacked since
May 1 to 24 and the total sunk to 14.

June 23 . — Japanese government announces a drastic program of price regulation, forced use of substitute materials,
and control of consumption. Chinese troops recapture Chungmou on the Lunghai railroad in a surprise attack, the
Japanese fleeing in rubber boats.

David Lloyd George and Clement Atlee, laborite leader, lead a scathing attack on Chamberlain for his refusal to
retaliate for the bombing and sinking of British ships in Spanish waters. George asks why Chamberlain does not
protest to Germany and Italy as "their planes are destroying our ships”. Chamberlain replies: "Lloyd George is
apparently ready to plunge this country into war”. Atlee scoffs at the fear of war and calls the Prime Minister an
“abject figure”. “The real fact is that our Prime Minister has backed Franco to win the war in order to gain an
alliance with Italy. He is prepared to sacrifice British interests and the lives of British sailors”. The House rings with
hoots and hisses and a number of spectators are ejected, but the final result is a vote of confidence in the form of a
rejection of Atlee’s motion to adjourn, 275 to 141.

Reported that Franco is bringing 60,000 more Moors across the Strait of Gibraltar.

June 24 . — Ten French warships reported en route to Hainan from French Indo-China as Japanese warships spread
destruction along the coast. Said that Chinese machine gunners repulsed an attempted Japanese landing. The
territorial integrity of the island, which lies between Indo-China and Luzon, was guaranteed by a French-Japanese
treaty 20 years ago.

Reported “authoritatively” from London that Foreign Secretary Lord Halifax has revealed Britain’s readiness to
undertake to mediate between China and Japan.

June 25 . — Germany recalls Ambassador O. Trautmann, reportedly as a result of Chiang Kai-shek’s reluctance to
allow the departure of the German military advisers; at a farewell meeting between Chiang and the ambassador, the
former agreed to a discontinuance of their advisory duties but reserved the right to decide whether and when they
will be allowed to leave Hankow.

Some 250 people, mostly women and children, are killed in a rebel air raid of Alicante. The Spanish Ambassadors in
London and Paris inform the respective governments that Spain’s tolerance of Italian plane raids has reached the
limit and that reprisals will be made if they are not discontinued. The Italian government informs the French
government that any bombardment of Italian cities by Spanish airmen would be a signal for open hostilities and that
the fascist airforce, followed by the fascist army and navy would wipe the Spanish government off the map.

Said that Austrian Nazis are angry and resentful because of the behavior of German Nazis in Austria sent to organize
the country as a province of Germany, and that Hitler is holding troops in readiness to preserve order.

June 26 . — Chinese claim to have won a spectacular battle on the south bank of the Yangtze, retaking Hsiangkow, 33
miles above Anking, killing and wounding 3000 Japanese, and taking large quantities of military supplies, including
guns.

June 27 . — Chinese airmen sink 3 more Japanese war vessels in the Yangtze in the vicinity of the Matang boom,
after sinking 2 yesterday. Reported that Britain and France have warned Japan to stay off Hainan, declaring they
would support each other in case of “complications”.

Rebel planes bomb and set fire to a British vessel at Alicante and another one at Valencia, killing and wounding a
number of seamen. The opposition in the House of Commons seeks vainly to have the government consent to the
arming of British merchantmen with anti-aircrafi guns, Chamberlain declaring that a “good many difficulties” stand
in the way of such a move.

A Rome magazine publishes an article by Minister of War A. Pariani claiming that Italy could mobilize 12,000,000
men on a moment’s notice. Italy is indignant at the Spanish government’s threat to bomb Majorca and other Balearic
Island ports where Italy has heavy concentrations.

June 28 . — Government forces stop the Franco drive on Valencia and are reported as slowly loosening the rebel
stranglehold on the V alencia highway.

June 29 . — More than 1000 Japanese are killed in furious fighting in the vicinity of the Matang boom, the invaders
being repeatedly driven back to their warships.

The Rome spokesman states the government has advised Franco to use “moderation” in his efforts to prevent British
and other ships from bringing supplies to Spanish government ports.

President Quezon arrives in Kobe and tells reporters his visit to Japan has absolutely no political significance and is
only for a rest. Asked whether he would see Benigno Ramos, Filipino Sakdal leader living in Japan, he states that
Ramos is nothing to him and that he has no desire to talk to him. Floods interfere with his itinerary.

June 30 . — The Japanese-sponsored Peking government is reported discussing a plan with Japanese advisers for a
settlement of the war by dividing China into 5 autonomous zones — North China under Peking, Inner Mongolia
under the pro-Japanese Teh Wang, East China under the Japanese-sponsored government there. Central China under
Chiang Kai-shek, and South China under a Canton-Kwangsi combination; the plan also provides for foreign spheres
of influence — Japan in North China and Inner Mongolia, Germany in Shantung, Britain in the lower Yangtze valley,
France in South China. Chinese call the plan “crack-brained”. Reported 10,000 Manchukuoan troops have revolted.
The Paris press launches a drive to get the United States to help restrain Japan due to growing concern over reports
the Japanese are contemplating the occupation of Hainan.

Alfred Duff Cooper, First Lord of the Admiralty, states that both Britain and the United States are invoking the
“escalator clause” in the London Naval Treaty and have agreed to a maximum tonnage of 45,000 and 16-inch guns,
but that the British government does not intend for the present to build ships in excess of 40,000 tons and trusts that
other European governments will also not exceed this tonnage. He indicates that the tonnage was higher than that
wanted by Britain but that it was the lowest on which agreement could be reached. The French Foreign Office
announces it will restrict its ships to 35,000 tons as long as no other European power exceeds this.

Pope Pius commends Franco for his “noble promise to limit the victims and sufferers of war”, and expresses
“affection” for him.

The Italian Governor at Addis Ababa forbids whites to enter restaurants and bars which serve native Abyssinians “to
preserve the prestige of the white race”.

July 1 . — Chiang Kai-shek states that “China will not welcome the intercession of any foreign power for an armistice
unless Chinese sovereignty is fully restored.

President Quezon’s train is blocked by floods and he remains in Kyoto. Hundreds of thousands of people are
reported homeless and property losses are heavy.

Reported that Franco has ordered cessation of attacks on foreign shipping and the exercise of care to avoid hitting
foreign merchantmen in ports bombed as military objectives.

July 2 . — Thousands of terror-stricken civilians fleeing from Swatow after 2 days of renewed Japanese bombing
which killed around 1000 people, including many women and children. Japan is believed to have obtained vital
military and other information through the arrest of Gen. G. S. Lushkov, former chief of the Soviet Secret Police, by
Manchukuoan police on June 13 following his flight from Russia.

Franco reported to have proposed to designate a neutral port in Spain where “bona fide” shipping would not be
molested, but to have demanded that oil, coal, and motor trucks be added to the Non-Intervention Committee’s list
of contraband.

Fascist officials advise Italian booksellers not to display or promote the sale of books by Jewish authors. The
officials admit an anti-Jewish movement exists in Italy.

July 3 . — A squadron of 9 Chinese bombers sinks a 10,000-ton Japanese airplane carrier and 2 destroyers at Anking.

Chamberlain states in the House of Commons that the government will fight if necessary to preserve British
liberties, but will not risk involving the nation in a war to defend British ships in the Spanish trade; he states British
ships trading with Spain get 4 or 5 times the ordinary freight rates. He declares that the costs of war are so great that
he feels it his prime duty to strain every nerve to avoid a repetition of the Great War. “When 1 look around the
world, I must say I am appalled at the prospect. War, accompanied by horrible barbarities inflicted either wittingly
or unwittingly upon civil populations, is going on now in China and Japan”.

July 4 . — Japanese claim they shot down 45 out of a total of 50 Chinese planes in an air raid on Nanchang, capital of
Kiangsi, 6 of the planes being destroyed on the ground; they are said to have constituted almost the entire first-line
aerial defense-force of China. Japanese troops capture the Yangtze river port, Hukow.

Some 30 French Annamite police, armed with rifles, land on Hsisha Island, in the Paracel group, southeast of
Hainan, because of reports of Japanese activity there. The Japanese Foreign Office spokesman states: “We are
watching the situation with concern. There are a number of Japanese subjects living on the island which we
recognize as Chinese territory”.

Michael Kalinin, Chairman of the All-Union Central Executive Committee (President of Russia) states in a speech at
Moscow that Russia is launching the largest naval program in its history. “If you live among wolves you must bay
like a wolf’.

July 5 . — The $2,000,000, 800-mile highway, linking Kunming, capital of Yunan, with Burma, is completed.
Twenty-five German advisers to the Chinese government, including Gen. Alexander von Falkenhauser, leave
Hankow for Canton, en route to Germany. The General states he “feels sure China will gain the final victory in the
war with Japan” and that “Japan will fail both in war and in peace”.

Spanish loyalists fall back before the new rebel drive in the Sagunta sector and the rebels also score successes on
other fronts. Twenty-six European nations unanimously approve a British plan for the withdrawal of volunteers from
Spain — observation by land and sea of the Spanish frontiers, granting of limited belligerent rights to both sides,
census of foreign volunteers on both sides by an international commission, final gradual and simultaneous
withdrawal. Estimated the counting will take 3 months. Last unofficial estimate was 60,000 foreign volunteers with
Franco and 7000 with the government forces.

Six Jews are killed in renewed Jewish-Arab riots in Palestine.

July 6 . — The People s Political Council is inaugurated at Hankow with the British and American Ambassadors and
other diplomatic and consular representatives in attendance. Chiang Kai-shek states: “Today we establish a really
democratic government, with a real, democratic spirit”. The Chinese government instructs the people to observe 3
minutes silence tomorrow on the anniversary of the break-out of the present war a year ago near Peking. Chiang
issues a statement expressing gratitude to the people of all nations for their assistance and sympathy, urging friendly
powers to “seek effective means of manacling the common enemy of international order”, and admonishing the
Japanese people to rise and stop the “madness of their militarists”, pointing out that the Japanese losses in manpower
already exceed 500,000 and that the cost is already greater than that of the entire Russo-Japanese war. The French
Ambassador in Tokyo explains that the dispatch of police to the Paracel islands was for the purpose of protecting
lighthouses and a wireless station which will soon be erected there as an aid very necessary aid to navigation. Dr.
Wellington Koo, informs the French Foreign Office that his government considers the Paracel islands a Chinese
possession and asks an explanation of the French action; he is told the police were landed there to protect marine
establishments used by ships of all nations as it is a particularly dangerous locality.

Chamberlain tells the House of Commons that he feels conditions for making effective the accord signed at Rome
on April 6 remain unfulfilled and that he has refused to hasten putting it into effect until Spain is free of aliens.

July 7. — In a renewed wave of terrorism on the anniversary of the war, a number of Japanese and Chinese are killed
in Shanghai. Gen. Hata, Commander in Chief of the Japanese forces in Central China, states that a year has passed
since the “Chinese army provoked the Sino-Japanese conflict, and that during that time the Japanese nation, united
as one, has firmly trod the path of justice, upheld international good faith, and advanced toward a lofty goal — the
establishment of permanent peace in Asia. The territory now in our grasp comprises 1/3 of China, while if we take
such factors as industry, trade, communications, and natural resources into consideration, half of the country is in
our control. Never has such a brilliant record been achieved in the annals of the world. . . In the face of continuous
defeats, the Chiang Kai-shek regime has desperately sought to maintain power, regardless of the methods employed
to do so. It has misled 400,000,000 people into continuing a fight that they can not win and has plunged the Chinese
nation into indescribable suffering. Without repentance, the same regime has effected a union with the Communists,
thereby creating a new source of internal and external strife. . . .” Foreign military officials estimate the casualties so
far as 100,000 dead and 300,000 wounded for Japan, and 400,000 dead and 750,000 wounded for China, not
counting civilian casualties placed between 1,000,000 and 2,000,000, while 50,000,000 Chinese have been affected
by the hostilities, of which 30,000,000 have been rendered destitute and homeless. Japanese soldiers and sailors
engaged number well over 1,200,000 men. In Japan, the cost of living has increased from 12 to 30% and exports
were off 23% at the end of the first quarter of the year, due mainly to boycotts and the closing of Japan’s second-
best market normally — China.

President Quezon arrives in Tokyo and is entertained at dinner by Ugaki and at various other social functions given
in his honor.

Franco is reported to have given Britain definite assurance he will not tolerate foreign intervention or domination in
Spain in event of a rebel victory. Reported from Rome that an Italian army commission has returned from Spain and
reported to Mussolini that the rebel forces are now capable of winning the civil war without further assistance.

In Palestine’s bloodiest riot since the World War, 18 Arabs and 5 Jews are killed in a gun -battle at Haifa; 92 Arabs
and 1 1 Jews are seriously wounded.

July 8 . — Shanghai police have arrested some 300 persons suspected of terroristic activities. The American State
Department reveals that American manufacturers sold some $12,500,000 worth of war supplies to China during the
first year of the Sino-Japanese hostilities and some $7,600,000 to Japan, although Japan bought more than China
during the last 6 months.

Erich Maria Remarque, author of “All Quiet on the Western Front”, and 68 other German writers, most of them
Jews, have been deprived of their citizenship, it is disclosed.

July 9 . — Japan goes on a war footing by establishing emergency control over the manufacture, sale, and
consumption of all major commodities, including gold, cotton piece-goods, woolen fabrics, hides and leather,
rubber, American timber, lead, tin, zinc, nickel, and antimony; general consumption of flax and hemp has practically
been banned and restrictions are in force on the consumption of benzol, toluol, carbolic acid, asbestos, sodium
nitrate, industrial salts, potash, orck phosphate, etc. The Japanese press denounces France as having shown a
provocative attitude since the outbreak of the fighting in China, and it is claimed that France offered Britain and
America the use of an Indo-China bay as a base for their fleets. Headquarters at Hankow claim the Chinese airforce
destroyed 17 Japanese planes aground at Anking and crippled another Japanese warship on the Yangtze.

President Quezon boards the S.S. Empress of Japan at Kobe; on the same ship are Assem. Manuel Roxas, member
of the Joint Preparatory Committee on Philippine Affairs, and Francisco Varona, returning from the United States.

July 10 . — A week of rioting in Palestine has cost the lives of some 65 people with 200 more wounded, 3/4 of the
casualties being among the Arabs.

July 11 . — Chiang Kai-shek states that the military situation is in favor of China and that victory is not far distant.

The Spanish government formally accuses Franco of planning to circumvent the Non-intervention Commission’s
program of evacuating foreign fighters by incorporating his foreign allies into the Spanish Foreign Legion; it
charges that Italy has sent 7000 soldiers, including 334 aviators, to Spain since the signing of the Anglo-Italian
agreement last April.

Rumored in London that the government has received reports of large-scale German espionage in Canada, possibly
connected with German spy groups in the United States.

Financial experts of the League of Nations said to have prepared a report to be submitted to the League’s Finance
Committee warning that a world economic crisis is imminent. “The recession which began in the United States in
the spring of 1937 has assumed such proportions that its gravity can not be ignored. . . .” Estimated world industrial
production has fallen 15% below that of 1929.

July 12 . — The Japanese resume the aerial bombardment of Canton, killing many people, including patients in a
maternity hospital and people on board river junks.

Despite rising Italian anger, reported from London that Britain has decided not to make any further concessions to
Italy because any relaxation of the present British minimum demands would be politically disastrous to the
Chamberlain regime.

July 13 . — War Minister Gen. S. Itagaki is reported in the Japanese press to have stated in an address to staff officers
that the “situation is not without some indication, however slight, that the nation’s blazing patriotic ardor is tending
to slow down and wear out. . . Replenishment of munitions for the armies in China is not being carried out as fully
as required, owing to difficulty in obtaining important war materials and the insufficiency of productive facilities. .
.” Chinese troops in North China are reported withdrawing before heavily reinforced Japanese columns. The
German Chamber of Commerce in Shanghai warns the Nazi government that German trade in China is sharply
falling off due to the government’s political attitude.

The government informs the House of Commons that assurances have been received that extrality rights of
foreigners in China will not be revoked by Japan.

July 14 . — Announced in Tokyo that the scheduled 1940 International Exposition there will be indefinitely
postponed.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary. Philippine Magazine, 35(8), 365-369, 400-402.

News Summary, Philippine Magazine: July 17 - August 14, 1938

News Summary
The Philippines

July 17 — President Manuel L. Quezon returns to Manila from a short vacation in Japan. In an address on the Luneta
delivered in Tagalog, he assails the clergy for meddling in affairs of state and says he will ask the National
Assembly to disregard his veto of the bill providing for religious instruction in the public schools and to take it up
again so that the members can define their stand, although he declares he will veto it again if it is repassed. He states
he is prepared to go to the people on the issue confident that they are for the separation of church and state and
prefer the present to the old order. He decries the fact that there are those who would sacrifice national harmony to a
question that should not even be discussed as there is freedom of conscience and worship here. He says he would not
object to an expression of the view of church dignitaries as individuals, as free speech is a constitutional right but
that in issuing the pastoral letter of a few weeks ago they sought to make a demonstration of the power and influence
of the church. “If it is a show-down they want, they can have it,” he declares, stating, too, that he will support in the
coming elections those members of the Assembly who have abided or will abide by his veto of the bill.

Assemblyman Manuel Roxas, who returned on the same ship with the President, states the American people are
indifferent to any plan for a realistic re-examination of the Philippine question and that any progress in connection
with the proposal will depend entirely on the United States High Commissioner, its chief exponent, and on the state
of affairs in the United States. He says the American people believe the Philippine question has been adequately
dealt with in previous legislation. As to the report of the Joint Preparatory Committee on Philippine Affairs, of
which he is a member, he states that it stands a good chance of receiving Congressional endorsement provided
President Roosevelt will give it full backing. In certain official quarters in Washington, he states, there is an opinion
that the report should be given the right of way and that the realistic re-examination proposal should be taken up
subsequently. He believes there is no danger of the whole Philippine question being thrown open as a result of an
adverse attitude of the agricultural blocs, although he admits that the present quiescence is probably due to the fact
that the report has not yet been published.

Francisco Varona, another passenger on the ship, tells the press that Philippine labor in Hawaii and the United
States, some 100,000 men, constitutes the country’s number one export as it represents an annual earned income of
$60,000,000, part of which finds its way back to the Philippines. He states the government should not continue to
neglect Philippine labor abroad and should give it the protection it deserves. He favors the creation of a labor office
in the office of the Philippine Resident Commissioner in Washington and also Filipino affiliation with organized
labor unions such as the C.I.O. He minimizes reports of racial discrimination, stating the discrimination is more
economic than racial.

The local branch of the American Red Cross has received orders from United States headquarters to ship 500,000
doses of cholera vaccine from here to China. Because of the proximity of Manila, donations from other countries for
the purchase of vaccine will also be sent here, and the government is increasing the production. As no funds are
available here for the donation of vaccine, the government offered to manufacture it here at the nominal production
cost of 2-1/2 cents (U.S.) a dose.

July 18 . — Some one hundred friends, led by President Quezon and Vice-President Sergio Osmena stage a “surprise
party” in honor of High Commissioner Paul V. McNutt’s 47th birthday anniversary tomorrow. Mayor Juan Posadas
presents him with a pearl pin and an engraved plaque on behalf of the City of Manila.

General Fernando Canon, friend and companion of Jose Rizal, dies, aged 78.

July 19 . — President Quezon in a radio speech denies that he went to Japan to start negotiations for the neutralization
of the Philippines, as reported by a press correspondent, stating that the United States government has reserved the
control of the foreign relations of the Philippines to itself. He states that spokesmen of the Foreign Office of Japan
have already let it be known Japan is ready and willing, if invited, to be one of the signatories to a neutralization

treaty. He states he is “not one of those who entertain any misgivings as to the attitude of Japan towards the
Philippines once we shall have become independent. . . The security of the Philippines, in my opinion, will depend
more upon the Filipino people themselves and their government than upon the designs of foreign powers. . . We
must be fair and just, tolerant and neutral, so as not to give an excuse to any foreign power to interfere in our affairs.

. . I am persuaded that America in granting us independence, does it upon the assumption that she has stayed in the
Philippines long enough, and has given the Filipinos sufficient training to permit them to assume full responsibility
for their national affairs. . . It is not for me to pass judgment on the issues involved in the unfortunate conflict
wherein millions of people are now engaged in this part of the globe, but I trust it is not out of place for me to
express the hope shared by the people of my country that this conflict may soon end, and that when it does end,
peace and mutual understanding will be permanently established among the nations of the Far East”.

President Quezon calls a special meeting of the Assembly for July 25 to act on an election bill and certain other
measures, but it is stated at Malacanan that as a concession to the opposition to increased taxes at this time, only the
most necessary measures will be pushed through.

A “high church official” in Cebu is quoted as saying that the church is “above politics” and that “if politicians want
to wage war by considering the pastoral letter as political propaganda, they can go ahead and shadow-box all they
want to as the church does not care to oppose them”.

The S. S. President Jefferson leaves Manila on its final trip, marking the withdrawal of the American Mail Line from
the Orient.

July 20. — President Quezon’s speech is reported well received in the United States and Tokyo is pleased due to his
denial of the existence of any illegitimate Japanese designs toward the Philippines.

July 21. — Dr. H. Foster Bain, government geological adviser, reports to the National Development Company that a
billion tons or more of iron ore are in sight in Surigao, “beautifully situated for mining and shipping”. The average
ore sampled contains 47% iron, 9% aluminum, 4% chromite, 1% nickel, and the rest moisture.

July 22. — President Quezon announces that in view of the statement of Secretary of Finance Antonio de las Alas
that the revenues at the end of the year might be P5, 000,000 to P6,000,000 more than estimated, no tax legislation
will be taken up during the coming special session of the Assembly and that such consideration will await the
recommendations of a tax commission he is creating. He also announces the reorganization of the National
Economic Council and his appointment of Assem. Roxas to the chairmanship vice Secretary de las Alas. The
reorganized Council will consist exclusively of government officials.

July 23. — The National Development Company rejects the offer of a Japanese firm to exploit on a royalty basis a
portion of the Surigao iron deposit area. The firm offered 50 cents for each ton of raw ore. A similar offer from a
Philippine concern has also been rejected because of the government’s decision to develop the mines itself.

July 25. — The Assembly convenes in special session.

July 26. — President Quezon reads his message to the Assembly, calling the attention of that body to the need of
amending the Election Law — ’’determined as we are to establish democracy firmly and permanently in our country,
we must exercise the strictest vigilance to maintain the streams of free popular expression unpolluted and undefiled .

. . above all we must guard the ballot box against the pernicious influence of money, and guarantee to every citizen
that the lack of wealth shall not be a bar to his seeking an opportunity to serve the nation”. He states it had been his
intention to submit certain tax measures because of the urgent need of funds for school purposes and in order to
bring the taxation system more in accord with the policy of just distribution according to ability to pay, but that the
first 6 months of the year collections were several million pesos more than estimated and that immediate action is
therefore not necessary. He proposes the creation of a tax commission to study the question carefully, stating that
while the power to tax should be used “both to produce revenue for the government and as an instrument to mold
and direct the social and economic organization of the country . . . this great power should be used only after careful
deliberation”. He states the people of the Philippines are “absolutely as well as relatively among the least taxed

people in the world" and that “we are far from performing adequately the most elementary duties of government”.
As to the religious instruction issue, he states that inasmuch as during a special session the Assembly can only act on
his veto of the religious instruction bill if he includes it among the measures to be taken up, he is offering the
assemblymen the opportunity to do so, “if you so desire" “1 have considered it advisable to do this because I, regard
the controversies that have arisen ... of such seriousness and importance that it would be well for the whole nation
and all the parties involved that they may be settled now and forever. ... I trust the National Assembly will
cooperate with me in my earnest endeavor to guard our country against the bitter strife that has arisen in other
nations because of similar or allied causes. Let us not by our refusal to face these dangers merely postpone the
inevitable conflict which, not withstanding the sound and patriotic purposes of those engaged therein, will inevitably
degenerate into a religious struggle with all its accompanying evils.” He states that if the bill is repassed, he will
again veto it, because though he considers religion a great “power for good" and as “stabilizing in its influence”, the
duty of teaching, religion rests with the parents and the church, and that while he is prepared to give every facility to
the teaching of religion to the youth in accordance with the laws of the land, the Constitution contains express
provisions for the separation of church and state and against the use of public property in the interest of any religion,
and that his attitude is dictated both by the Constitution and his own personal conviction. . . As to the Joint
Preparatory Committee, he states it has completed its work “after long, laborious, and conscientious study of all
phases of the problem” and that he has a copy in his possession but can not yet transmit it because of the request of
the President of the United States that it be kept confidential for the present. “Perhaps the recommendations of the
report may not meet with the approval of every one, but I am voicing the sentiment of the Filipino members of the
committee when I say that the American members went as far as they honestly felt they could go in meeting our
views, and I hope that the American members will also feel that this has been the attitude of their Filipino
colleagues”. He expresses grateful appreciation of their valuable work and says that the “whole Philippine nation
will never forget the kindly interest and concern which President Roosevelt has shown for our future welfare and
security”.

After a caucus, the Assembly unanimously adopts without a record vote a motion offered by Floor Leader Jose E.
Romero tabling the vetoed religious instruction bill and providing that the bill, together with the veto message, be
sent to the archives. Assem. Eusebio Orense, a proponent of the bill, asks three times whether the motion refers only
to the present session of the Assembly, to which Romero answers in the affirmative, stating that no legislative body
can bind the next, but he tells the press later he considers the issue “laid on the table at least for one generation”.

W. L. Bramwell, General Manager of Warner, Barnes & Company and President of the Manila Chamber of
Commerce, dies in Baguio of a heart attack. He was connected with the Company since his coming to the
Philippines in 1902.

July 28. — Assem. Jose C. Zulueta states the religious instruction bill is not dead, but tabled, and may be brought up
again at any time.

July 29 . — At the inauguration ceremonies of the new building of the Chamber of Commerce of the Philippines,
President Quezon pledges fair treatment for all business interests, Filipino, American, and foreign. Vicente Madrigal
states that the entire business community has “complete and absolute faith" in his administration.

The University of the Philippines Board of Regents accepts, with reprimand, the resignation of Professor Antonio
Albert of the College of Engineering who clashed with President Quezon when he, on a visit of inspection, called
the Professor’s attention to the lack of discipline in his classroom.

July 30 . — The Pan-American Hawaiian Clipper, which should have arrived at Cavite from Guam yesterday
afternoon, is reported missing. It was last heard from by radio at 12:09 P. M., about 560 miles east of Manila. The
plane carried 6 passengers and a crew of 9, including the world-famous bacteriologist and leprologist. Dr. Earl B.
McKinley. Army and Navy ships and planes have launched the biggest sea-hunt in Far Eastern history. Later the
Army Transport Meigs reports finding an oil slick about 450 miles east of San Bernardino Strait.

The National Rice and Corn Corporation starts wholesale shipments of rice to needy provinces in order to bring
prices down.

President Quezon requests the re-instatement of Professor Albert, the latter having apologized to him and the
President believing he has been sufficiently punished.

August 1 . — President Quezon temporarily takes over the supervision and control of municipal police throughout the
country, detaching them from the Department of the Interior. The police comprise some 10,000 men in 1120
municipalities and districts. Direct control is to be exercised by his advisers at Malacanan and by the Constabulary.

The National Powder and Dynamite Company announces that a plant capable of supplying the dynamite and powder
needs of the Philippine government and the mining industry and of supplying, in addition, neighboring countries,
will shortly be established in the Philippines. The Company was incorporated in October, 1937, and the directors are
Claro M. Recto, E. J. Halsema Francisco Ortigas, Jose Ma. Cacho, Miguel Cuaderno, E. W. Schedler, and G. Adolfo
Roensch.

A branch of the Bank of Taiwan, Ltd. opens in Manila.

Aug. 3 . — President Quezon announces at a press conference after an earlier conference with High Commissioner
McNutt, that the Philippines will officially celebrate the 40th anniversary of the American occupation of Manila on
August 13, as the 50th will come 2 years after independence will have been declared under present law. “I think the
people are appreciative of the benefits derived from the American regime and I want them to voice that through
appropriate ceremonies.” Occupation Day has been a legal holiday since Taff s time, but it was chiefly celebrated by
the Americans.

President Quezon accepts the explanation of Secretary of the Interior Elpidio Quirino that he did not meet with
provincial governors to formulate a protest against the President’s police order, as reported in a section of the press.
At the press conference, he explains that the move is another step in his effort to divorce politics from government.
He states the activities of political parties should be confined to drawing up platforms and to the election of
candidates for office, for whenever a political party runs the government itself the result has been inefficiency,
dishonesty, injustice, and abuse. He states fascism is nothing but an old form of government — autocracy, and that
the reason this has been revived in some countries is the inefficiency of the former governments there. He declares
he believes in democratic government and that he also believes that it can be made efficient and kept free from
improper influences.

President Quezon addresses a letter to Assem. Benigno Aquino, general campaign manager of the Nacionallista
Party, stating that if Cabinet members or appointive mayors of municipalities are considered so essential to the
electoral campaign that their services must be called for, they should first resign their positions before entering upon
such activities.

Pedro Abad Santos, Pampanga socialist leader, states there are some 50,000 totally or partly unemployed persons in
the province and that official statistics show there are 1,500,000 jobless in the Islands.

Aug. 4 . — President Quezon extends the special session of the Assembly to the 15th.

Aug. 6 . — High Commissioner McNutt states the Quezon plan to celebrate August 13 is a “generous move”.

Aug. 8 . — A fire in the rich Laguna town of San Pablo, destroys most of the town, the damage being estimated at
around P4,000,000. A fire in Tondo, Manila, destroys 16 thickly populated blocks, rendering several thousand
people homeless; damage is estimated at P400.000.

Secretary of Agriculture and Commerce Eulogio Rodriguez returns from a trip around the world with a none-too-
bright report on world economic and trade conditions. He states that by and large the Filipino people are better off
socially as well as economically than the people of other countries.

J. M. Elizalde, Philippine representative on the International Sugar Council, states at London: “When I see other
countries fighting for the mere chance to market their sugar, regardless of price, in the so-called world’s free market,
which is only half the size of that of the United States market which absorbs Philippine sugar, I realize how
fortunate the Philippines is. . . It is a satisfaction to know that we enjoy individual liberty and political freedom to a
far greater extent than many peoples of Europe. Economically we are well off because we may sell in the immense
market of the United States and our trade association with the United States has been highly profitable. On our part,
we offer the United States a very valuable export market, due to the fact that our tariffs protect American goods
from foreign competition. . . I think the Philippines will succeed. We have the resources and the determination. But
we would be foolish not to make the most of our very satisfactory relationship with the United States. We are in
something like the position of a young man who is just reaching 21 years. . . It will be much easier for him to
succeed if he remains on good terms with his father, getting the latter’s assistance and advice when needed. And the
time may come when he can help the old man. . .”

Aug. 10 . — President Quezon sends a special message to the Assembly recommending an amendment to the
government’s plan of buying up and selling large estates to the tenants by providing that the government instead
lease the estates for a period not exceeding 25 years and with an option to purchase them during that time at a stated
price and sublease them to the present tenants. This would eliminate the necessity for large disbursements and would
give time and opportunity for the government to formulate its policy on the basis of experience.

W. J. Ellis, prominent Manila old timer and shipping man, dies, aged 61.

Aug. 12 . — President Quezon m a special message to the Assembly strongly urges the passage of a bill filed by
Assem. Felipe Buencamino which would create a National Sugar Board and provide for an increase in the
processing tax, for more equitable distribution of profits among millers, planters, and land owners, the elimination of
unsuitable lands, etc.

Reported that the Philippine National Bank has loaned P7, 000,000 to the Hijos de I. de la Rama to finance the
building of 4 new inter-island and ocean-going steamers as part of the government’s policy to establish a Philippine
merchant marine. Construction of the ships has already been ordered — one passenger vessel in Germany, costing
Pl,750,000, and 3 freighters in Italy, costing about P2,000,000 each.

Led by Assem. Roxas, the Assembly unanimously passes a resolution, introduced by Floor Leader Romero,
expressing gratitude to the “government and people of the United States for the altruism, justice, and generosity
which has underlain the policies in the Philippines, and for the grant of independence as provided in the
Independence Act”.

High Commissioner McNutt, addressing the United Spanish War Veterans, declares that the men who came here in
1898, ’99, and 1900 were “activated by the spirit of true patriotism and remained to build a nation”. “The
Philippines is one spot in the Eastern World where men are free and where men govern themselves. . . . Those things
for which you fought are the only salvation of the world, bound in the end to prevail, or else man himself would
perish”. He states, that in the Occupation Day celebration to be staged by the Filipinos tomorrow “the world will
witness a thing never before done in history under similar circumstances — the celebration by a conquered people of
the success of those who won the war”. Gen. Angel Cortez, representing Gen. Emilio Aguinaldo, who was unable to
be present, read a message from the latter, praising the work of the United States in the Philippines.

Aug. 13 . — Sirens and guns awake the people of Manila at 5 o’clock. At 6 the U. S. Thirty-first Infantry Band, in an
international radio broadcast, plays “There will be a hot time in the old town tonight”, the march played by the
American troops on entering the Walled City of Manila forty years ago, and other patriotic airs. At 7:30 a big
military and civil parade, led by President Quezon himself together with members of the Cabinet, the Assembly, and
the highest courts, composed of Philippine Army, Cadet, and R.O.T.C. units, civil service employees, university
professors and students, school teachers, school children. Boy Scouts, laborers, etc., march to the Luneta, where the
President presents High Commissioner McNutt with two silk American and Philippine flags to be sent by him to
President Roosevelt.

Before a crowd estimated at around 150,000 people. President Quezon delivers an address, stating, in part, that the
“angry passions of those warlike days”, 40 years ago, “are now calmed and soothed. The sense of personal
misfortune has passed, and we live far enough from those days of trial and test to know that the honesty and
sincerity were not all on one side; that the efforts of the genius, courage, and virtue of those heroic periods are now
our common heritage. Feelings of reciprocal respect unite the warring factions in bonds of understanding and
reverence for our mutual dead. . . The main purpose of this gathering is to express the boundless gratitude of the
Filipino people to the United States for the measureless benefits she has bestowed during the 4 decades that have
passed since then. . . . When, for the first time in my life, on the afternoon of August 13, 1898, I saw the Stars and
Stripes, little did I realize that I was witnessing what in ultimate result may prove to be the greatest event of modern
civilization in the Orient. Little did I know in my immaturity that I was beholding the birth of a new ideology in
Asia, an ideology that was then a strange, new conception in this part of the world — a conception that government is
‘of the people by the people, for the people’, a conception based upon the magic words of liberty and freedom. . . .
[This flag] ‘thirteen stars, white, in a blue field, representing a new constellation. . . pictures the vision of a people
whose eyes are turned to the rising dawn. It represents the hope of a nation for posterity. It speaks with the sanctity
of revelation. It has a meaning unrivalled; a message which gladdens all races; a strength and power of influence
which inspires people to bravest thoughts and deeds. The struggle for human rights and liberty gave it birth; battles
for freedom scarred it with holy markings; and the spirit of sacrifice, service, and devotion, has made it blessed. It
symbolizes two great acts of national statesmanship the Declaration of Independence and the Constitution. . . It is
the great contribution of the American Revolution that the fundamental, essential human rights became the purpose
and prime concern of government; that it took them out of the category of things debatable. . . . Woven into the very
warp and woof of the Constitution were the principles of the Declaration of Independence. But now, instead of being
an announcement of a philosophy of government, they were enacted into immutable law. . . [The Constitution]
solved the great problem of the reconciliation of government with liberty. In England the omnipotence of parliament
was fully established. But here the omnipotence of the legislative body was emphatically denied. Over and above the
power of the law-makers was set the higher power of the Constitution. . . [Elsewhere] liberty and justice, even the
sanctity of the constitution itself, depends upon the goodwill of the legislators or their fear of political consequences.
Here, let but the least attempt be made to thwart or deny what is written in the organic law, let but the meanest
citizen be stripped of the rights which this great charter of liberties guarantees him, and it is the voice of Justice [the
courts], unimpassioned, inflexible, which interposes the categorical negative of the Constitution. . . All this and
more was written in that flag as it unfurled above the Pasig before my uncomprehending eyes that fateful afternoon.
. . Under its folds peace and prosperity have come to this favored land. Materially we have developed education,
sanitation, agricultural and industrial enterprises. Security and happiness, freedom from financial pressure, a higher
mode of life, all are ours. A new and progressive outlook upon the modern problems of life is in the making. All of
this we owe to that starry flag and to the great people it represents. When it finally comes down from Santiago in
1946, it will find somewhere in its folds the grateful hearts of a people — a new and vibrant Republic, facing with
optimistic hope its rising dawn. . . Occupation Day, 40 Years ago, we will not forget. We can not forget. Mr. High
Commissioner: As a symbol of the endless chain of friendship which binds together our two peoples, I wish to
present to you. Sir, for your exalted leader, the President of the United States, these two flags — that of your own
country and that of the new country to which it has given birth. The tie that binds us together, which they represent,
does not depend on an alliance, nor a declaration, nor a treaty. It consists of those eternal spiritual kinships and
relationships which defy all quarrels, all oppositions, all aspirations. It is that extraordinary, indefinable longing for
the same sort of things. Our aims, our hopes, our appreciations are the same. In the great moral causes, the great
causes of righteousness, of liberty, of peace, the great causes which mean the perpetuation of the higher and nobler
aims and purposes of life, the United States and the Philippines are in complete unison, not dominating nor
conspiring against each other, but going on in perfect accord, because in the essential things we are in absolute and
hearty agreement.”

At a state banquet at Malacanan, with High Commissioner McNutt as the guest of honor. President Quezon praises
him as “possessed of rare qualities of statesmanship and adorned with manly virtues — representing in his person the
ideals which have made America the one, single inspiration of the whole world in these times of distress”. The High
Commissioner states that Occupation Day has taken on a new meaning and that Americans here and in the homeland
feel deeply this very fine expression. What has happened here the past 40 years shows that the feeling of friendship
has been reciprocated from the very beginning in the form of a policy announced in the very beginning and carried
out with faithfulness. “Disregarding any material benefits which may have come to the Philippines by reason of 40
years of America in these Islands, the one thing which I hope is the principal heritage of these people, Mr. President,
is Freedom — the right to live, the right to work, the right to be human beings, to enjoy all of those things which are

the heritage of human beings. As you said so kindly this morning, the relationship between the United States of
America and the Philippines is a thoroughly spiritual relationship. Therefore it can not be destroyed, it will not be
destroyed. . . The ties which have been made shall never be severed as long as men live”.

Aug. 14 . — In a radio-conversation broadcast to the United States between High Commissioner McNutt and President
Quezon, the former, in his introductory remarks, states for the information of the radio audience that though self-
governing, the Commonwealth of the Philippines “is a part of the United States with authority retained that is
commensurate with the responsibilities of sovereignty, and of yesterday’s celebration of Occupation Day he declares
that President Quezon’s action "in making possible a nation-wide demonstration of loyalty and thankfulness was a
generous manifestation fully appreciated by the American people”. President Quezon states that “Under American
tutelage, the Philippines has developed in many ways, but, particularly, economically, by raising the standard of
living, and politically, by the inauguration of a democratic Commonwealth based on the consent of the governed. It
is just and fitting, therefore, that we render honor to the great democracy of the United States”. The High
Commissioner states that America has always been “actuated by a firm purpose to follow the high course of action”
and that “that altruistic concept of America’s mission in the Philippines still guides us. . . The Philippines has been
treated not as colonies have been treated, but the people of the Islands have been considered as partners in a great
and worthy enterprise. If, as one result of the American policy in the Philippines, the position of the United States in
Far Eastern affairs has been enhanced, and if American trade has gained its 9th largest market here, no one has just
cause for complaint. . . Yesterday, Mr. President, and again this morning, you have expressed for yourself and the
Filipino people their appreciation for what the United States has done of the Philippines. In response, permit me to
thank you and through you the Filipino people for what they have done in a true spirit of understanding and
cooperation for the United States, in the accomplishment of measures mutually beneficial to the American and
Filipino people”. Referring to the two flags given him yesterday for presentation to the President of the United
States, the High Commissioner states these will in due time reach him. “Thus the ties binding the United States will
be made closer and firmer and the Philippine community generally will have made partial acknowledgement for all
the President has done for these Islands”. President Quezon states the Filipino people have never had a better and
truer friend than President Roosevelt, that he made possible the approval of the Tydings -McDuffie Act which
established the Commonwealth, lent his aid in returning to the Philippines the proceeds of the processing taxes
levied on Philippine goods in the United States, sponsored the work of the loint Preparatory Committee on
Philippine Affairs sent distinguished Americans here to fill important civil and military posts, etc. The High
Commissioner asking about the future of the Philippines, President Quezon replies: I am no prophet, but let me say
this: We Filipinos are laying plans intended to safeguard our patrimony. We also feel certain that America will
continue to lend a sympathetic ear to our reasonable petitions. . . I look with confidence to the future. As early
expressed by President William McKinley, the Filipinos have, I believe, fulfilled his cherished hope, for they can,
and do, look back with gratitude to the day when destiny placed their land under the guidance of the people of the
United States”. The High Commissioner closes the conversation with the statement: “Thank you, Mr. President, for
your assurances regarding continued Filipino- American friendship. Fet us strive to understand each other. Fet us
strive to solve our mutual problems tolerantly and wisely. Fet us strive to maintain the position of the United States
as a great democratic state, devoted to the cause of peace and to making more secure the Commonwealth of the
Philippines, another democracy, which Providence has brought within the sphere of American influence”.

High Commissioner McNutt tells the press that the two-day celebration has been "the most impressive celebration of
any kind that I have seen anywhere. Its sincerity was so marked that the response on the part of the Americans here
and at home will be in full measure. It is not very often that we see expressions of gratitude in this world, and when
they come and come sincerely, they are heart-warming. It was a very grand thing to do!”

The United States

July 14 . — President Franklin D. Roosevelt, speaking in San Francisco, invites world powers to join in arms
reduction as the “present course must inevitably lead to disaster. We stand ready to meet them and encourage them
in any efforts they may make toward a definite reduction”. He deplores American arms expenditures but states “all
we know is that we are faced with conditions, not with theory . . . and the conditions are not of our choosing. The
proportion of the national income being spent on armaments is only one-quarter or one-third that of most other
nations”.

July 15 . — Howard Hughes in a statement in New York appeals against bombing from the air and states that if flyers
would determine to be more than mere pawns, "this killing would soon stop”.

July 16 . — Samuel Insull, former American utility magnate, dies in Paris, aged 79.

July 16 . — The State Department announces that Japan has promised Americans will be permitted to return gradually
to their properties in Chinese territory occupied by them, although the Japanese note stated that American and
Japanese views on the situation are “fundamentally divergent”.

The Non-Partisan Labor League, headed by John H. Lewis, blacklists some 40 members of Congress, marking them
for defeat in the November elections, chiefly because of their opposition to the wages and hours bill. The majority of
the House Rules Committee, which pigeon-holed the bill for many months, is included.

July 18 . — Secretary of State Cordell Hull indicates that Japan’s note on the question of American rights in China has
not settled the issue to the government’s satisfaction and that the matter is in many of its aspects a “continuing
discussion”.

Douglas Corrigan, 33-year old American flyer, crosses the Atlantic from New York to Dublin, Ireland, in 28 hours
and 13 minutes in a 9-year old, reconditioned Curtis-Robin plane without first having secured the necessary
government permission. He tells the press in Ireland: “I left New York to return to Los Angeles, but made the
unfortunate mistake of setting the compass wrong. When I got above the clouds, the visibility was very bad. I flew a
considerable distance, but did not know I was over the ocean. . . I sure was surprised to find myself over the Irish
coast”. The Liars’ Club of Burlington, Wisconsin, elect Corrigan a life-member. U. S. Bureau of Commerce officials
have cancelled his license in order to prevent his attempting to fly back again. He receives many telegrams of
congratulation, including one from Henry Ford. An American radio company pays him $2,000 for a broadcast to the
United States.

July 21 . — Secretary Hull summons the Mexican Ambassador and hands him a note accusing Mexico of failure to
make an earnest effort to pay the indemnities for the seizure of American-owned farm lands in Mexico since 1927,
declaring this constitutes not expropriation but confiscation. It is believed the action foreshadows similar action in
regard to the oil properties.

July 21 . — The “Mercury” — ’’pick-a-back” plane which landed in Canada from England yesterday, arrives in New
York with newspictures of King George and Queen Mary’s visit to Paris a few days ago.

Owen Wister, well-known novelist, dies in Providence, Rhode Island, aged 78.

July 22 . — Washington economic experts are reported to anticipate a gradual and unspectacular improvement in
United States trade.

The Seaplane Nordmeer of the German Lufthansa arrives in New York after a flight of 17 hours 42-1/2 minutes
from the Azores.

July 23. — The Illinois Court of Appeals holds that sit-down strikes are illegal, reversing the stand of the National
Labor Relations Board.

July 24 . — Reported that War Department aeronautical officials have opposed the Dutch K.L.M.’s application to
extend its Netherland Indies air line to the Philippines on the ground that as the United States is responsible for the
defense of the Islands in a troubled Orient, it can not afford to jeopardize insular defense plans by opening a
possibility for alien observation.

A magazine article by Postmaster-General James A. Farley appears which contains critical and apparently
unfriendly references to P. V. McNutt’s alleged anti-Roosevelt activities during the 1932 Democratic National
Convention.

July 25 . — A Puerto Rican nationalist fires at, but misses. Governor Blanton Winship on the occasion of the
celebration of the 40th anniversary of the landing of American troops there during the Spanish-American War. Two
persons are killed and others wounded in the subsequent police-firing.

A. V. Dalrymple, former Governor of Amburayan sub-province, Benguet, dies in Washington, D.C., as a result of an
automobile accident.

July 28 . — Reported from Washington that the Japanese-American gentlemen’s agreement to limit exports of
Japanese cotton piece goods into the Philippines to 45,000,000 square meters annually has been extended for one
more year, with the proviso that transhipments of Japanese goods from foreign ports are to count.

Aug. 1 . — Announced that Maj.-Gen. Frank Ross McCoy will retire from active service on October 31. He is 64
years old and was relieved of command of the Second Corps area on July 30. He is a veteran of many conflicts and
served in the Philippines in many capacities, including that of Chief of Staff to the W ood-Forbes Mission and that of
Adviser to Governor-General Leonard Wood.

Aug 4 . — Eddie Cantor, American commedian, denounces Henry Ford for accepting a German decoration, stating
that he doubts his Americanism and his Christianity. Ford states to the press; “There is nothing to be said”. The
decoration was bestowed on him recently by Fuhrer Adolf Hitler for his contributions to automotive progress.

Aug 5 . — Reported that Japan is seeking to extend its air-service to the South Seas by way of American-woned
Guam.

Aug. 10 . — Juan Trippe, President of Pan-American Airways announces that the Company, “after 8 days of intensive
search, is regretfully forced to assume that the Hawaii Clipper and all aboard were lost at sea. Lacking recovery of
any positive evidence, it is impossible at this time to assign the cause for the Clipper’s loss.”

Warner Oland, screen star, famous for his role as Charlie Chan, Chinese detective, dies of pneumonia in Stockholm,
Sweden, where he went on a visit. He was 58 years old.

Aug 9 . — For the first time in many weeks. Ambassador H. Saito calls on Secretary Hull to “discuss the general
situation in the Orient”.

Other Countries

July 15 . — Chinese claim that no less than 21 Japanese warships have been sunk and 19 damaged in the lower
Yangtze as a result of Chinese aerial bombing the past fortnight. Said that under British leadership, Germany Italy,
Sweden, and Switzerland are sounding out Japan and China in an effort to determine a satisfactory basis for peace
proposals to be submitted in September; also said that Britain would withhold loans to China to force consideration
of an armistice and has in fact recently refused a £20,000,000 loan. Reported that American dollars are the chief
means by which China has financed its defense — not from direct loans, but as the United States has been purchasing
Chinese silver currency with American money, this gives China a sound basis for purchases of war material in the
United States.

The British government is reported to have threatened General Francisco Franco with a withdrawal of its partial
recognition of his regime because of his equivocal attitude with respect to British protests against bombing of British
ships.

Pundit Nehru, Indian Congress leader, states that India’s tremendous sympathy for China has led to a fairly
successful boycott of Japanese goods in India; an Indian medical unit will soon be dispatched to China.

July 16 . — The Peking Japanese-controlled Shih Pao states that Britain’s attitude toward Generalissimo Chiang Kai-
shek will soon change because of impatience with his defeats and that both the United States and Britain will soon
recognize the Japanese-sponsored governments. Reported from London that the government has not finally rejected
the proposal of a loan to China, but postponed consideration of the matter, and that apart from a direct loan, other
forms of credit are being studied.

Fuhrer Adolf Hitler telegraphs his congratulations to Franco on the eve of the second anniversary of the Spanish
uprising. It is estimated that more than 1 ,000,000 people have been killed in Spain or have died from causes directly
attributable to the civil war.

July 17 . — Hundreds of people are killed in Canton in one of the most intense air raids of the war by 21 Japanese
bombers; the Wongsha Station is completely wrecked.

Pope Pius deplores such “exaggerated forms of nationalism” as evidenced in the German Nazi anti-Jewish measures,
the Pope’s statement being believed to have been prompted by the recent publication in Italy of an official “credo”
which excludes Jews from membership in the “Italian race”.

July 18 . — The reported killing of a reconnoitering Japanese gendarme on the Siberian-Manchukuo frontier near
Changkufeng where Soviet soldiers allegedly are occupying Manchukuoan territory, adds to the growing Russo-
Japanese tension. Peking is reported completely surrounded by Chinese guerilla bands. The Shanghai Municipal
government in an effort to end terrorism in the city, announces that any person committing an armed crime against
any of the armed forces in Shanghai will be turned over to the offended party.

Spanish rebel bombing planes annihilate an entire loyalist division and government resistance along the Teruel-
Mediterranean highway is reported to be collapsing with a retreat toward Sagunto. Premier Benito Mussolini
congratulates Franco, stating that “Fascist Italy is proud to have contributed her blood, fraternally shed by our
legionnaire volunteers, as a means toward your victory”.

Dowager Queen Mary of Rumania dies in Buckarest, aged 62.

July 19 . — The Japanese clear a usable channel through the Matangboom in the Yangtze, but have been unable so far
to break through the Chinese defenses in their advance on Kiukiang and Nanchang. In a raid over the Wuhan triple
cities, some 1100 people are killed, 500 in Hankow alone, the biggest raid over the city so far. Japanese authorities
in Shanghai criticize the British and American efforts to create a refuge zone in Hankow as interference with the
Japanese army’s operations necessary because of China’s mistaken policy of resistance to the Japanese.

King George VI and Queen Elizabeth of Britain arrive in France on the first state visit of British monarchs to France
in a quarter of a century, and receive an almost delirious reception from the French. Foreign Secretary Lord Halifax
and War Secretary Leslie Hore-Belisha accompany them. The King at a banquet pledges Britain to a close alliance
with France for the defense of “democratic principles and individual liberty”. “We are proud of this political faith
which we share with other great nations” — presumably referring to the United States. “The entente cordiale, the
foundations for which were laid by my father and my grandfather, has lost nothing of its strength and vitality.”

The Valencia Defense Council calls on all able-bodied persons to aid in constructing fortifications, trenches, and
bomb-proof shelters.

July 20 . — The Japanese Foreign Office spokesman states that Japan is “quite ready to discuss the matter of
Philippine neutralization if the time ever comes when assurance is wanted that Philippine neutrality in international
affairs will be respected.” He states the matter was not discussed during President Quezon’s visit to Japan.

Prime Minister Neville Chamberlain, in reply to questions in the House of Commons, states that he sees little
possibility of a mediation in the Sino-Japanese conflict.

July 21 . — A reported brisk movement of Russian troops to the Manchukuoan frontier at Changkufeng shocks
Tokyo. The Japan spokesman claims some 40 Russian soldiers have built “fortifications” 3 miles within the border,
and that Russia has rejected a Japanese protest against the presence of the troops there, claiming the area is Soviet
territory. General Alexander von Falkenhausen, former military adviser to Chiang Kai-shek, states in London that
European powers greatly overestimate the Japanese war machine.

Britain and France are reported to have rejected Hitler’s proposed solution of the Czeckoslovakian crisis, which
consisted of his offer of a “durable peace” if the Sudeten German minority are given “autonomy” and
Czechoslovakia abandon its definite alliances with France and Russia. French Foreign Minister Georges Bonnet,
however, states the prospects for a solution are bright and it is believed that Britain and France have agreed to urge
President Eduard Benes of Czechoslovakia to moderate his stiff stand against the Sudetens. Disclosed at Paris with
the arrival of the British air chief Cyril Newhall in Paris that the French and German air chiefs will confer shortly in
Germany on air-armaments limitation and the neutralizing of civilian areas in war time.

The Spanish government’s “spider-web” defense has reportedly stalled the rebel offensive against Sagunto and
Valencia.

Territorists are reported to have killed 77 persons during the past fortnight in Palestine.

The small, 4-motored British Imperial Airways “pick-a-back” plane Mercury, taking off from Foynes, Ireland, from
the back of a much larger plane at an altitude of 1000 feet because too heavily loaded to take off from the water,
alights in the St. Lawrence River near Montreal, Canada, completing the Atlantic crossing of 2715 miles in 20
hours, 20 minutes.

July 22 . — The Japanese Ambassador telling Russian Foreign Commissar Maxim Litvinov that if the Russian troops
are not withdrawn from Changkufeng Japan “must consider the necessity of forcibly ejecting them”, Litvinov
answers that “it is hardly possible to think that the Ambassador considers such threats good diplomacy and that he
will meet with success in applying this method to Moscow; Litvinov states the Japanese demands and claims are
“not backed by any documents whatever and are unacceptable.” Unconfirmed Chinese reports are to the effect that
the Japanese have occupied Lincoln Island in the Paracel Group between French Indo-China and the Philippines.

King George and Queen Mary leave Paris after a triumphant 3 -day visit. Stopping on the way at Villiers
Brettoneaux, to dedicate a monument to the Australian war dead, states that “Britain and France are bound by
unbreakable ties and will stand together for the maintenance of ideals for which so many of our people have laid
down their lives”. President Albert Lebrun has accepted an invitation to visit England. French diplomatic circles are
reported to believe that the demonstration of the Franco-British alliance will pave the way for a renewal of
friendship between the two democratic nations and Germany. However, the French Minister of Colonies and also
the Minister of Justice are reportedly threatening to resign allegedly because Foreign Minister Bonnet has “sold out
Czechoslovakia to Britain”, the British view being that France’s alliance with that country is offensive to Germany
and therefore does not make for peace. Chamberlain informs the House of Commons that the government several
days ago received assurances from an envoy “Hitler’s reassurances of Germany’s desire to achieve a peaceful
settlement of outstanding questions”, after a Laborite demand to know the meaning of reported secret negotiations
with Germany.

July 23 . — The Japanese Foreign Office spokesman denies that Japan threatened to use force in connection with the
alleged Russian invasion of Manchukuoan territory. “All I can say is that great patience is necessary”.

Reported that Britain has informed Germany is ready to discuss a wider Anglo-German rapprochement, including
the possibility of colonial concessions, provided Germany will aid in a peaceful settlement of the Czeckoslovakian
question.

July 24 . — Rebel troops under the personal command of Franco take the loyalist salient in Estremadura.

July 25 . — Japanese forces smash the Chinese fortifications and are within a few miles of Kiukiang. The Chinese
shore defenses on the west side of Poyang Lake have been destroyed, but the Lion Hill forts are still holding out.

Announced that Sir Walter Runciman, former President of the British Board of Trade, will head an effort at British
mediation between the Czecks and the Sudeten Germans, both Czechoslovakia and Germany having tacitly
approved his selection for the task.

A bomb explodes in the Haifa, Palestine, vegetable market, killing 46 people and wounding scores of others, mostly
Arabs.

During the celebration of the 400th anniversary of the founding of Bogota, Colombia, 37 people are killed and more
than 100 injured when a stunting airplane crashes into the grand-stand.

July 26 . — Japanese reports tell of a 5-hour battle near Mutankiang between Manchukuoan troops and 300 Russian
soldiers, the Russians being finally repulsed. After a 3 -day battle, the Japanese capture Kiukiang, strategic center,
bringing the Japanese within 140 miles of Hankow. Japanese warships are proceeding up the Yangtze. All civil
government offices in Hankow are ordered to move out before August 4, most of them to be transferred to
Chungking, farther up the Yangtze.

Chamberlain is given a confidence vote of 275 to 128 after telling the Commons that Britain has set out to settle the
Check minority question in order to avert war, but not at the expense of British honor or interest. “Let none imagine
that although we seek peace we are willing to sacrifice British honor.” He states Franco has accepted proposals to
investigate the bombing of British ships and that a court of inquiry will be established to determine questions of
compensation. With reference to the Far East, he states: “When Japanese say they are protecting their interests in
China, they ought to know Britain also has interests in China which it is not prepared to see sacrificed”.

Reported from Berlin that large contingents of army reserves will be called for intensive maneuvers coincident with
the expected show-down on the Czeck question early in August. Konrad Henlein, Sudeten German minority is
quoted in a London newspaper as saying: “I absolutely rule out war as a possible solution to our difficulties. No
matter how the negotiations result, there won’t be war so far as we are concerned. . . . We do not ask for annexation
to the German Reich.”

The Arabs declare a general strike in the Jerusalem area and in several other places in protest against the bombing
incident at Haifa. Eddie Cantor, American stage, radio, and movie comedian, states in London that during his 2
weeks’ stay he has collected £100,000 for the transfer of Jewish children to Palestine from Germany, Austria, and
Poland.

July 27 . — Manchukuo officials state they are ready to compromise on the Changkufeng situation.

Reported from London that negotiations have been started by Britain and France for a final settlement of their war
debts to the United States.

President Lazaro Cardenas tells the press Mexico is ready to pay for the American-owned farm lands expropriated
1 1 years ago provided no full cash payments are demanded and installments will be accepted. “If no difficulties are
placed in our way, we will be able to pay with money obtained from the sale of petroleum.” He reiterates he hopes
to sell oil only to democratic countries, but if these refuse, he states Mexico will sell to any one.

July 28 . — Japanese troops take the strategic walled city of Taihu, on the north bank of the Yangtze. Lord Halifax
states in the House of Lords that the British government “is already considering the possible action open to us if we
do not secure adequate consideration for the interests we have a right to protect in China. . . We have every right to

expect that the Japanese will recognize that if they have certain interests to protect, we have the same and are not
unmindful of our responsibilities, which we have every intention of discharging.”

Reported from Prague that the Cabinet has approved a statute designed to appease the German minority.

Government forces are reported to be making large advances on the western front and to be pushing across the Ebro
toward Gandesa, having captured 7000 rebel troops, mostly Italians and Moors, and large quantities of war supplies.
The government success there is said to have halted the rebel offensives against Valencia and Estremadura.

July 29 . — Japanese planes bomb fleeing refugees in the Lushan mountains south of Kiukiang, killing some 3000,
and are reported to be continuously raiding the Kiukiang and Nanchang areas. Diplomatic observers in Shanghai
point out that the United States must lead any future attempts at mediation if there are to be any chances of success
because both the Japanese army and navy distrust Britain.

The rebels open the Ebro river dams, flooding a large area in an effort to halt the government offensive there.

Pope Pius criticizes extreme nationalism and radicalism and "the raising of barriers between men and men and
people and people”. “Why does Italy find it necessary to imitate Germany?”

Riots during the past few days in Rangoon, Burma, between Burmese and Indians, have resulted in 43 deaths and
many injured and the looting of a number of Indian shops.

July 30 . — Mussolini states that "to say that fascism imitates anyone or anything is simply absurd. On the question of
race we shoot straight.”

Hitler presents Henry Ford on his 75th birthday with the Grand Cross of the German Eagle in recognition of his
work in automotive engineering.

July 31 . — Japanese reports state that Japanese and Manchukuoan troops ousted the Russians from Changkufeng,
killing some 30 Russians and capturing a number of tanks and mountain guns.

Dining the celebration of the 100th anniversary of the abolition of slavery in Jamaica, 52 persons are killed and 80
injured in a holiday train crash.

Aug 1 . — The Russian government announces from Moscow that attacking Japanese at Changkufeng suffered an
estimated loss of 400 dead, while 13 Russian soldiers were killed and 55 wounded in what appears may be the
beginning of a major battle. It is claimed that the fighting was provoked by Japanese and Manchukuoan troops
which attacked a Russian border patrol under cover of an artillery barrage, and that strong protest will be made to
Tokyo with a warning of possible grave consequences of Japanese aggression. “The Japanese militarists are not
respecting frontiers established by Russo-Chinese treaties and clearly marked on maps appended to them. The
Japanese report that 50 Russian planes bombed Changkufeng, causing slight damage to the railroads in the vicinity
and that 4 of the planes were shot down. Japanese Minister-at-large M. Tani states that “if Britain wants to maintain
its rights in China, it is a logical conclusion that it must rely on Japan, recognizing the results of Japanese military
victories, Japan being really able to protect Britain’s rights and interests in China. Some belief Britain intends to aid
Chiang Kai-shek. I can not believe Britain will bet on a losing horse”. Reported from London that the government
contemplates extending a loan of £10,000,000 or more to China for non-military purposes only.

Spanish government forces in a number of surprise assaults near Gandesa and on the Teruel front, occupy a number
of new towns.

Aug. 2 . — News of the Changkufeng clash is suppressed in Peking, but Tokyo reports declare that the Russians
opened a general attack with 10 planes and 8 tanks and artillery, but were repulsed. An official states, “We consider
the situation exceptionally serious. . . Japan’s policy is one of unaggression, but it will not tolerate invasion of its

territory. In spite of the fighting in China, Japan is capable of engaging in a major conflict with Russia. The
Kwantung army, which is probably the empire’s best, is still intact both in men and munitions”. A Cabinet meeting
is held and Premier Konoye later reports personally to the Emperor. The government is reported making
preparations for wholesale “black-outs” and complete control of sound and light at night against possible air
raids.Reztter ’s reports from London that the Siberian border trouble is causing no particular anxiety and is regarded
as purely local. The Daily Telegraph (London) states: “Japan has the strongest reason for not wishing to add to its
military commitments, while Russia can not wish for a war that might not be confined to the borders of
Manchukuo”. Authoritative circles in Rome express the hope that a peaceful solution will be reached. The Berliner
Tageblatt states: “It is quite obvious that the Russians are trying to assist the Chinese as the Japanese are nearing
Hankow. At no time could a serious conflict with another power be more disturbing to Japan than at this hour when
it is about to launch its great offensive against the strongest center of resistance in China . . . but the situation is not
dangerous because the Japanese have been holding not a few of their best divisions in reserve for such an
eventuality. Marshal Bluecher must know this and undoubtedly will think twice before embarking on any further
provocation which would be fraught with serious consequences”.

Aug. 3. — Japan sends a second protest to Moscow and a Tokyo spokesman tells the press that the continued fighting
on the border marks the beginning of an undeclared war between Russian and Japanese forces, and represents a
Russian effort to delay the collapse of China. It is hoped, he states, to localize the situation and effect a settlement by
diplomacy. Large bodies of troops are being rushed north from the China fronts. The Russian Siberian war machine,
comprising 1,000,000 men, is said to be moving toward the border. France is reported to be counselling restraint to
Russia because of the potentialities of the Czeckoslovakian situation and because the old British antagonisms are
allegedly flaring up again.

Aug. 4. — Litvinov tells the Japanese Ambassador that fighting must cease, artillery withdrawn, all Japanese soldiers
evacuated from Soviet territory, and that Japan must recognize the Russo-Chinese treaty of 1886 and the appended
border maps in which the Changkufeng area is shown as part of Russian territory. The Japanese Vice-Minister of
Foreign Affairs in Tokyo confers with the Russian charge d’affaires and makes proposals for the cessation of
hostilities. Reported that a fog caused a lull in the fighting yesterday and that the Russians are bringing
reinforcements for an apparent attempt to retake the Japanese-occupied hills. Millions of workers in factories,
shipyards, aviation plants, etc. join military garrisons in signing resolutions demanding action against Japan’s
insolent aggression. Japanese troops are reported to be evacuating outlying points in North China, retaining only the
lines of communication, and to be rushing their forces to Manchukuo. A writer in the San Francisco News states that
Japan deliberately precipitated the border trouble after learning from General Lushkov, a Soviet fugitive, that the
“purge” has allegedly greatly weakened the Russian Siberian forces as 60% of the best officer personnel had been
killed, morale is low, and arms and munitions insufficient.

Aug. 5. — Artillery duels are resumed across the Siberia-Manchukuo border, the disputed territory still remaining in
Japanese possession and Moscow bluntly refuses a Japanese offer to compromise. A Japanese spokesman states
Japan has not the slightest intention of attacking the Russians in their territory. The Moscow spokesman states that
the easy seizure of the hills near Changkufeng by the Japanese should have convinced them that the Russians were
not making any preparations for offensive action there. An article in Mussolini’s Giornale d’ltalia states that the
Russian troop movements in Siberia constitute a “fresh element in the already confused and dangerous situation in
the Far East. Italy is definitely opposed to any violent and destructive expansion of Communism in the world. Italy
has always considered the resolute Japanese action in China as a courageous move directed not only toward
guaranteeing the vital and legitimate interests of Japan on the Asiatic continent, but also towards saving Chinese
civilization itself from the threat of Bolshevik exploitation”. Some 95 Japanese gunboats and transports start up the
Yangtze for Kiukiang to effect a landing west of the flooded Lungping sector which has been holding up the
advance.

The Japanese government announces it has ordered authorities in the South Sea mandated areas to send out boats in
search of the Hawaiian Clipper.

Aug. 6. — The Japanese government spokesman states that Russia’s reply to Japanese peace offers is “roughly
acceptable”, Russian planes bomb the Tomen-Rashin Railway at a point 15 miles northwest of Yuki, Korea,
partially disrupting traffic, and other places are also bombed, the Japanese claiming two of the planes were shot

down. Japanese officers are reported to be indignant at the bombing of peaceful Korean villages and warn that
retaliation is only a question of time. The Russian bombardment of the Japanese positions in the Changkufeng hills
continues throughout the day.

Five oil-tankers leave Mexican ports under sealed orders, it is believed for Germany. Meanwhile President Cardenas
signs a bill establishing a 12% tax on exports, against the protest of mining interests that are the hardest hit by the
law.

Aug. 8 . — Japanese claim that a Russian attack on Changkufeng was repulsed with heavy casualties. The Chinese
claim large-scale successes on both banks of the Yangtze, halting the Japanese advance on Hankow. The Japanese
again heavily bomb Canton, two bombs damaging the French Cathedral and killing a score of people in the edifice.
The French government reveals at Paris a decision to build a naval base at Camranh Bay, on the coast of Annam,
French Indo-China, to be a “second Singapore” and to serve as a complement to the British base.

Spanish rebels claim they have turned the government drive in the Ebro region into a retreat.

Aug. 9 . — General Vassili Bleucher is reported to have arrived on the border to assume personal supervision.
Reported from Paris that Stalin agrees with him that the Siberian border must be defended, but is opposed to any
aggression due to the present tension in Europe. London reports say that Chamberlain and Hallifax believe Russia
and Japan could settle their dispute diplomatically, but that Britain will not attempt to mediate unless this is
expressly requested by Moscow and Tokyo. A British government spokesman tells the United Press Britain will
maintain complete neutrality. Paris reports say that the German Ambassador to France has informed the government
that Germany has promised the Japanese Ambassador in Berlin that it will support Japan “morally and otherwise”.
Tokyo newspapers quote the German Foreign Minister as having told the Japanese Ambassador that Germany “will
support Japan at any cost in the complications with Russia”, but it is rumored that the German Ambassador in Tokyo
has counselled a policy of moderation. Chinese planes actively bomb Japanese ships in the Yangtze and troops
attack Japanese positions following an abrupt halt in the drive toward Hankow. Japanese air raids over Canton and
other South China cities continue with hundreds of lives lost.

Unemployed in the United Kingdom reported to number 1,773,000, which is 29,000 less than in June, 1938, but
448,000 more than in July, 1937.

Aug. 10 . — The Japanese Foreign Office spokesman states Japan is ready to concede to Russia equal representation
on a commission for the demarcation of the boundary; heretofore Japan has insisted on a commission composed of 3
Japanese, 3 Manchukuoans and 3 Russians, while Russia demands 2 Russians, 1 Japanese, and 1 Manchukuoan.
War Minister S. Itagaki holds a special session of the Supreme War Council that lasts 3 hours. The Russians are
steadily shelling Changkufeng and bombing neighboring towns from the air. The official attitude at Rome continues
to be one of complete reserve, though authoritative quarters express a desire that the conflict remain localized and
end peacefully. Japanese troops are reported to be fleeing before the gradually strengthening Chinese counter-
offensive in the Yangtze Valley.

Aug. 11 . — Fighting on the Siberian border ceases at least temporarily with the signing of a truce under which each
side is to continue occupation of the territory held at midnight, Wednesday. A commission of 2 Russians, 1
Japanese, and 1 Manchukuoan will negotiate a definition of the frontier.

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary. Philippine Magazine , 35(9), 409-413, 444-446.

News Summary, Philippine Magazine: August 15 - September 16, 1938

News Summary
The Philippines

Aug. 15 . — The special session of the National Assembly comes to a close, the new Electoral Code, the hacienda
government lease bill, the oil lands lease bill, and the military courts bill being among the principal measures
approved; action on the sugar bill was deferred. Assemblyman Manuel Roxas delivers an address of farewell to his
colleagues stating he will not run for reelection in order to devote his entire time to the chairmanship of the National
Economic Council.

German Consul G. A. Sakowsky addresses a letter to all members of the German Club, Inc., Manila, asking them to
resign from the Club “or take the responsibility for the consequences” as membership will be regarded as an
expression of sentiments against the Reich, and stating that if an association among Germans abroad does not
cooperate with the Nazi Party without friction, such an organization “can only be a detriment and a shame to
Germans”.

Aug. 17 . — President Manuel L. Quezon creates a Sugar Board with Rafael Alunan as Chairman and Oscar Ledesma,
Placido L. Mapa, Dr. Manuel L. Roxas, Francisco Varona, Juan M. Elizalde, Mariano J. Santos, Louis Weinzheimer,
and Hermenegildo H. Cruz as members. The Board will make a survey of the industry and submit recommendations
to the President.

Provincial Governors in Manila urge the National Rice and Corn Corporation to peg the price of 2nd class rice at
P5.50, from PI. 00 to P2.00 less than the current price. Dr. Victor Buencamino, head of the Corporation, states that
in its efforts to stabilize the industry, the Company acts as a leveller between the producers who want high prices
and the consumers who want low prices, and that the present price is normal on the basis of general averages.

Aug. 19 . — President Quezon reaches his 60th birthday anniversary and in an address to some 40,000 university
students gathered in the Rizal Memorial Stadium reviews the first half of his administration devoted to laying down
the political and governmental foundations and states that he will devote the rest of his term chiefly to a spiritual
revival of the people. He points out that freedom and prosperity have come more as a gift from heaven than through
the people’s efforts, and states they are too soft and easy-going. He criticizes parasitism, especially that among the
small landowners who are content with a meager income from rent of their land instead of working it themselves.
He declares that the heroic qualities of the early people who settled the Philippines are dormant, and that a social
code — a sort of written Bushido, should be formulated and taught to inculcate self-discipline and raise the general
character as “democracy itself can only survive and be effective in promoting the common welfare if the people are
intelligent, virtuous, and efficient.”

Assem. Felipe Buencamino, speaking in Santa Cruz, Laguna, states that it is the duty of all good citizens to elect to
the next Assembly men who will be ready to amend the Constitution so as to make it possible for President Quezon
to serve another term.

The worst drought in two decades is reported to be threatening the Central Luzon rice provinces with a loss of two-
thirds of the crop.

Aug. 21 . — Pierre L. Darnar, editor of the Paris L ’Humanite, states in a press interview in Manila that the great issue
today is not fascism versus communism, but fascism versus democracy, and that it is to the interests of the
Philippines to remain a few more years under the United States in order better to insure its independence and prevent
annexation of the country by Japan and the implantation of fascism here. He states France is following a progressive
policy in its colonies but will not let Indo-China loose merely to provide a new stronghold for fascism through the
prompt interference that could be expected from Japan.

J. Weldon Jones, Financial Adviser to the U. S. High Commissioner and for some time acting High Commissioner,
leaves for a vacation in the United States, the first in 5 years, expecting to return in January.

Aug. 22 . — Opposition leaders approve a platform declaring in favor of independence in 1946, as provided in the
Tydings-McDuffie Act, or earlier if possible, condemning the McNutt “realistic reexamination” proposal as a
“violation of the plighted word” of the United States, dismissing the dominion plan as “chimerical and
unattainable”, and declaring that the retention of naval bases in the Islands by the United States after independence
would not only be incongruous with the promise of complete independence, but would make extremely difficult the
preservation of neuttality in the event of a war involving the United States. The platform admits the importance of
negotiations to make the economic provisions in the Tydings-McDuffie Law less onerous, but blames the “chronic
social unrest” partly on the free trade with the United States and the consequent high prices, and advocates the
elimination of unnecessary imports and an increase in exports to other countries. It opposes "ill -digested plans of
industrialization”, attacks the sugar industry for paying starvation wages, claims that the industry do not pay their
just share of the taxes. It opposes the reelection of the President as a step toward dictatorship, claims that the
Assembly has been “reduced to a mere executive appendage” and states that “persons of courage and firmness
should be elected to reassert the prerogatives of the Assembly”. It claims the independence of the judiciary has been
undermined by the so-called reorganization act and that the Department of Justice is a “pernicious superfluity”. The
amendments to the Sedition Law are called a menace to free speech and press and unconstitutional, as is also the
“suppression of public assemblies”. It declares the civil service and the army have not been divorced from politics,
that the recently approved Election Law is partisan, that the funds set aside for the veterans are insufficient, and
blames the government for not taking action against the Filipino officials and government employees who obtained
public lands in Davao and transferred their rights to the Japanese.

President Quezon signs the bill codifying the election laws, the oil lease bill and several other measures.

August 23 . — President Quezon appoints a Tax Commission with Manuel Roxas as Chairman and the following as
members: Budget Commissioner Serafin Marabut, Collector of Internal Revenue Alfredo L. Yatco, Under-Secretary
of Finance Guillermo Gomez, Vicente Madrigal, and Kenneth B. Day; one place is left vacant to be filled by a
member of the Assembly after the elections.

President Quezon, accompanied by government officials and advisers, leaves Manila on the S. S. Mayon on an
inspection trip to Mindanao.

Aug. 24 . — In an address to the students of the University of the Philippines, U. S. High Commissioner Paul V.
McNutt makes a plea for the further development of the country’s educational system and for a “practical idealism”,
stating that the most dreadful Sphinx of the world is anarchy — ”the anarchy of the Jacobin and the anarchy of the
Bourbon. We can not cure these anarchies with anger, with dynamite, or with soldiery. We require not the man who
rages, but the man who understands”.

President Quezon states in Iloilo that he does not want to be reelected. ‘“What is important t o me is the principle
involved in the provision of our Constitution which prohibits reelection of the president”. He criticizes provincial
governors and assemblymen stating that they seldom approach him except on political matters and seem to be more
concerned about their reelection than anything else. He states he may recommend the abolition of the Department of
the Interior to give provincial officials greater dignity and render them more efficient. He points out the evil of tax
evasion, and again pleads for a more serious attitude on the part of the people toward life, criticizing the customary
disproportionate expenditures at marriages and baptisms and for clothes instead of food. He also reveals that the
government has purchased the S. S. Mayon from the Dollar Company.

Secretary Jorge B. Vargas tells the press that the President left instructions that the National Economic Council look
into the complaints against the National Rice and Corn Corporation as being responsible for the high price of rice.

Aug. 25 . — Judge Juan Sumulong is elected Supreme Executive of the allied opposition parties with Wenceslao Q.
Vinzons as Secretary.

Reported that the government paid PI, 200,000 for the Mayon, and that it will be operated by the Manila Railroad
Company and continue on the weekly Manila-Iloilo-Zamboanga-Cebu run. It is the finest ship in the inter-island
service, was built in 1930 by Vickers -Armstrong, Ltd., Barrow, England, and is rated 100-A-l by Lloyd’s

Aug. 28. — The National Federation of Labor in Manila holds an anti -communist convention under the chairmanship
of Ruperto S. Cristobal. A message from President Quezon is read warning against class hatred and violence.
Delegates sign a pledge declaring they “abhor communism and fascism as principles violative of human liberty and
personal rights . . . and as subversive to anything democratic”.

Benigno Ramos, Sakdal leader, returns to Manila after 4 years in Japan and is arrested on charges of inciting to
rebellion, but released on P27,000 bail. He tells the press he is “for Quezon now”.

William J. Odom, well known old timer and building contractor, is drowned in crossing a river on horseback near
Aritao, Nueva Vizcaya.

Aug. 29. — The Binalbagan Sugar Central, of which the government, through the National Bank, owns more than
60% of the stock, decides to give the sugar planters an additional 5% share of the gross income, bringing it to 65%,
on condition that the additional share will go toward the improvement of wages and living conditions of the laborers.

High Commissioner McNutt confers with German Consul Sakowsky and though no announcement is made it is
believed he warned against official interference in the activities of the German Club, Inc., of Manila. A Washington
dispatch yesterday said the State Department had instructed the High Commissioner to advise the Consulate in
strong terms that it is displeased by the Consul’s action in ordering members of the Club to resign.

Aug. 30. — A Washington news dispatch states that the Consul sought the removal of certain Jewish members from
the German Club in Manila and that disciplinary action may be taken against him if there are any further attempts at
coercion. The Consul in a press statement denies that he had demanded such an ouster and states he coerced nobody.

Aug. 30. — President Quezon makes a surprise visit to Jolo after visiting Davao and is reported pleased by conditions
he found in Jolo.

German Consul in a press statement denies that he demanded the ouster of the Jewish members of the German Club
and states he coerced nobody.

Aug. 31. — Twelve members of the Japanese Diet arrive in Manila on a good-will visit. They will go to Davao and
from there to Borneo and the Japanese Mandated Islands.

Sept. 3. — The Manila Daily Bulletin reports that there are indications that Manila is being made the center of an
organized spy-ring which operates a net-work throughout the Far East.

Reported from Iloilo that Presides Quezon has announced the forthcoming appointment of Judge Teopisto
Guingona, former Director of the defunct Bureau of Non-Christian Tribes, as Commissioner of Mindanao and Sulu.
Also reported that Guingona and Director of Public Works Vicente Fragante have been named to draft a plan for
Mindanao development.

Sumulong states in a speech in Tarlac that the issue in the November elections is “between independence and a
dominion status”.

Sept. 4. — President Quezon and his party return to Manila.

Sept. 5. — Hubert C. Anderson, Managing Director of the Manila Hotel, dies of peritonitis following an
appendectomy.

Sept. 6 . — President Quezon, after going over a report of the National Economic Council, issues a statement declaring
that the National Rice and Corn Corporation has good reasons for setting the price of rice at the present level and
that he would not be justified in interfering.

The Philippine Sugar Association reports that the Philippines is still fifth among the suppliers of imports to the
United States and ninth as a customer of the United States.

Sept. 7. — After a Cabinet meeting during which Mindanao development plans were discussed. Secretary of Labor
Ramon Torres tells the press that the homestead system has been a failure because settlers were merely given
transportation money and then dumped into the Mindanao forests.

President Quezon signs a bill granting a special charter for the “City of Tagaytay,” still to be built on Tagaytay
Ridge, Rizal province.

Cecilio Apostol, Filipino poet in Spanish, dies in Caloocan, Rizal, aged 61.

Reported that Walter E. Antrim, former Manager of the Manila Hotel, died in Mexico City, August 24.

Sept. 8 . — With reference to reports that he had selected Secretary of Justice Jose Yulo for Speaker, President Quezon
issues a statement declaring that "the selection of officers of the National Assembly is exclusively the privilege and
within the powers of the Assembly. The President of the Philippines has nothing to do with it”.

At a state dinner in honor of Vice-president Sergio Osmena’s birthday. President Quezon pays a tribute to him for
his contribution in securing the freedom that is the Philippines today and in the laying of the foundations of the
government. He states the only explanation he can find of their sometimes having been in opposite camps is that
Osmena and-himself are temperamentally opposite. “Osmena was by nature an evolutionist and I have been all my
life a revolutionist. He always built upon the past and I always ignored the past. He never took but one step at a time
and I always wanted to jump. . .” Osmena responds that whatever he was able to do when he was the leader of the
Philippine participation in the government was due in big measure to Quezon’s able and loyal backing and that he
was fortunate in having as a collaborator a man of the ability, vision, and daring of Quezon

Division of Immigration figures are published showing that of the 10,620 aliens that came into the country in 1937,
5,170 were Chinese, 4,170 Japanese, and the rest various nationalities. Most of the Japanese went to Davao, a third
of them being women.

Sept. 9 . — Following a continued rise in prices, the National Rice and Corn Corporation announces that the common
variety of rice may be obtained from the Corporation or its bona fide dealers at P6.65 a sack of 57 kilos, or 29
centavos a ganta.

Vice-President Osmena observes his 60th and Assemblyman Quintin Paredes his 56th birthday anniversary.

Sept. 13 . — The Insular Government pays the City of Manila Pl.000,000 for the Ayuntamiento Building, occupied
for many years by various executive departments; the money will be used for building a new City Hall.

Sept. 14 . — A Shanghai American shipowner is reported to have applied for Philippine registration of three ships and
for permission to engage in coastwise trade; the ships were formerly Chinese and have been idle since the Sino-
Japanese hostilities.

Sept. 15 . — Secretary Yulo, who is reportedly being groomed for the position of Speaker, is nominated the official
candidate of the Nacionalista Party at Bacolod, Occidental Negros, together with the incumbent assemblymen
Enrique Magalona and Pedro Hernaez, Speaker Gil Montilla, Chairman of the Executive Commission of the Party,
who presided, declaring before the nominations that he had decided to retire and was not seeking reelection and
recommending Yulo’s candidacy as Yulo will run in his place in the third district.

Malacanan announces that bids for the lease of Philippine oil lands will be open until December 1 .

United States

Aug. 10 . — A joint British- American communique issued in Washington announces that the two nations will make
mutual use of Canton and Enderbury islands as a Pacific civil aviation base, the question of sovereignty to be held in
“protracted abeyance”.

Aug. 13. — Brig. -Gen. Charles Burnett, Chief of the Bureau of Insular Affairs, states that the Philippine celebration
of Occupation Day was a “very gracious act on the part of President Quezon.”

Aug. 14 . — The United Press estimates that some 20,000,000 people in the United States heard the McNutt-Quezon
broadcast. Washington observers are reported to believe that the broadcast is a reiteration of assurance that unsolved
problems will be met in a spirit of mutual friendly cooperation along the broad outlines of the good neighbor policy
that has been so successful in Latin America.

Rep. Martin Dies (Texas), chairman of a committee investigating un-American activities, states that an investigator
has reported “unbridled and unchecked communistic activities financed from within the Hollywood movie
industry”.

Aug. 15 . — President Franklin D. Roosevelt in a radio broadcast from Washington after returning from a cruise in
Central American waters, pledges to extend the nation’s social reform program to “all who need protection” and to
conquer the “frontier of insecurity, want, and fear”. He states the accomplishments of the past 3 years are
“impressive”, but that we should not be “unduly proud of them”.

John P. Frey, head of the metal trades department of the American Federation of Labor states before the Dies
committee that communists are actively trying to push President Roosevelt and the administration “further to the
left”.

Aug. 16 . — Secretary of State Cordell Hull in a radio broadcast proposes economic reconstruction, observance of
international law and treaties and their orderly modification when necessary, abstention from the use of force, non-
interference in the internal affairs of other nations and peaceful settlement of differences, disarmament, and cultural
collaboration.

President Roosevelt charges Rep. John O’Conner (New York) as being “one of the most effective obstructionists in
the Lower House” and also attacks Sen. M. E. Tydings (Maryland) as “wanting to run with Roosevelt prestige and
the money of his conservative friends both on his side”.

Aug. 17 . — Captain Charles Sleeper, well known in the Philippines, dies in New York, aged 74.

Henry Armstrong, American negro, wins the light-weight title from Lou Ambers in a 15-round fight at Madison
Square Garden, the first man to hold 3 world-crowns at the same time — feather weight, welter-weight, and light-
weight. Armstrong weighed 134 and Ambers 134-1/4 pounds.

Aug. 18 . — President Roosevelt, in dedicating a bridge linking New York State with the province of Ontario, states at
Kingston, Ontario, that the “people of the United States will not stand idly by if any foreign empire should threaten
Canada.” He speaks of the “wanton brutality of undemocratic regimentation” and declares that "this hemisphere at
least will remain a strong citadel in which civilization will flourish unimpaired”. He proposes the United States and
Canada cooperate in the development of the St. Lawrence waterway.

The Philippine freighter, S. S. Don Jose, of Madrigal & Company, first ship of the projected Philippine merchant
marine, arrives in San Francisco from Cebu on its first trip. It was formerly the Robert Dollarand is said to be the
largest freighter in the world.

Aug. 19. — Upon arriving at his Hyde Park estate from Canada, President Roosevelt tells the press he did not
contemplate an extension of the Monroe Doctrine to Canada and suggests that his questioners read the Monroe
declaration.

Aug. 20. — Howard Hughes sets a new transcontinental flight record from Los Angeles to New York of 10 hours, 35
minutes, 50 seconds.

Aug. 21. — Reported that the Federal Maritime Commission will acquire 90% of the voting stock of the Dollar
Steamship Company according to an agreement signed on the 19th and that the Company will receive a loan of
$2,500,000 for working capital and another $1,500,000 for repairing its fleet of 12 vessels only 4 of which are now
in operation. The terms are contingent on a subsequent granting of a 5 -year operating differential subsidy expected
to approximate $3,000,000 a year.

Aug. 22. — Secretary Hull reveals he has sent a formal note to Mexico regarding the payment for the American-
owned farmlands seized 1 1 years ago.

Aug. 25. — The State Department informs Mexico that its refusal to arbitrate the question of payment for the seized
lands is a violation of international law and threatens to break down confidence and trust between the two nations.

Aug. 27. — Capt. G. E. T. Eyston, famous British motorist, sets a new world automobile speed record of 345.49 miles
an hour at Bonneville Salt Flats, Utah, in his “Thunderbolt'’.

Aug. 28. — In a letter to the Editor of the Army and Navy Journal, President Roosevelt states that “as other nations
decrease their armaments, we will gladly join them by reducing those which present world conditions force us to
provide for our own protection".

Secretary Hull issues a statement reminding the world that yesterday was the 10th anniversary of the signing of the
Kellogg-Briand pact outlawing war and calls attention to the open hostilities in some parts of the world and the
preparations for war in other areas, declaring that “no nation can profit by war”. Questioned as to whether American
policy runs parallel with that of Britain in the preservation of peace, he says that America’s record for similarity of
thought speaks for itself.

Aug. 29. — Secretary of the Treasury Henry Morgenthau returns from a visit to Europe.

Aug. 31. — The defeat of Roosevelt’s senatorial candidate. Gov. O. D. Johnston in South Carolina by Sen. E. D.
Smith, directly repudiated by the President, and the defeat of Sen. W. G. MacAdoo in the California primaries, are
reported to have dealt Roosevelt prestige a heavy blow.

Sept. 1. — Announced at Washington that the entire United States Fleet will be moved into the Atlantic for spring
maneuvers; the Asiatic Fleet is not affected by the orders.

Plans to expand the Philippine merchant marine are favorably looked upon in Washington as a small but
nevertheless significant aid to the general American ship-building program. At the present time 65 % of the
commerce of the United States is carried in vessels flying foreign flags and an even higher percentage than this is
carried in non-American vessels across the Pacific. President Roosevelt has approved a program for the construction
of around 1,000 new merchant ships.

Customs officials at Portland, Oregon, find narcotics valued at $67,000, in the coal-bunkers of the S. S. San Jose ; the
ship is subject to a fine of $45,000 unless the persons responsible for the illegal traffic are apprehended.

Sept. 2. — President Roosevelt states he favors the election of liberal Republicans over conservative Democrats.

Sept. 3. — The War Department is reported to be broadening its plans for a rapid industrial mobilization in case of
war and “educational orders” for some $2,000,000 worth of goods will be placed with plants which manufacture
goods vital to the nation in war time.

Sept. 4. — High naval officials deny that the formation of a new and formidable Atlantic squadron means a change in
basic naval policy and emphasize that the Pacific Ocean will continue to be the main theater of American naval
strategy; the Atlantic squadron may only be a temporary formation.

The Mexican reply to the American note is published, stating that Mexico will continue its policy of expropriating
lands for the benefit of the majority of the population, and proposing a bilateral commission to determine the values
of the American lands expropriated and to fix the terms of payment but on condition that the government would pay
only and if it can. Officials are said to have received the note with marked impatience.

Cardinal Patrick J. Hayes, Archbishop of New York, dies, aged 80.

The Chief Engineer, the Third Engineer, and a machinist of the S. S. San Jose are arrested in connection with the
attempt to smuggle narcotics into the country.

Sept. 5. — A debate ending a 3-day convention in Washington of Filipinos in the United States, results in a victory
for the Chicago speakers who advocated a dominion status for the Philippines.

Sept. 6. — The Count of Covadonga oldest son of former King Alfonso XIII, dies in Miami following an automobile
accident, aged 3 1 .

Sept. 7. — Gen. James G. Harbord states in a New York radio broadcast that in granting independence to the
Philippines, “our country should not be blind to the fact it is probably contributing to the largest single cause of
future wars. The final decision should receive careful thought of both peoples before it is irrevocably
consummated”. He describes Quezon as the “most able Filipino of his generation”.

Seventeen U. S. Navy bombers fly from San Diego to Honolulu in 17 hours.

Sept. 10. — President Roosevelt indicates to the press that the government has not entered into any alignment with
democratic European powers to stop Hitler, but refers to his own and Secretary Hull’s speeches as regards the
government’s foreign policy.

Sept. 11 . — Secretary Hull in accepting an invitation to the United States to attend the 8th Pan Pacific Conference,
states that “No nation and no government can avoid the issue of lawlessness versus fair play that confronts the
world; neither can any nation avoid participation, willing or not, in the responsibility of determining which course of
action shall prevail”.

The United Press reports that 30,000 U. S. troops are preparing for maneuvers near the Mexican border while
Secretary Hull indicates a new and firmly-worded note will be sent to the Mexican government regarding settlement
for the exappropriated American-owned lands; War Department officials however emphasize that the maneuvers are
nothing more than routine.

Sept. 12. — Rep. Robert L. Bacon of New York dies aged 54.

Sept. 13. — The four Chinese passengers on the Philippine Clipper from Honkong to the United States, who have
been carefully guarded all the way by American authorities, are reported from Honolulu to be two prominent
bankers, K. P. Chen, Hsi Tehmou, S. D. Ren, and a secretary, reportedly invited by Secretary Morgenthau to discuss
an American loan to China.

Sept. 14 . — Delegates of the American League for Peace and Democracy, claiming to represent some 3,000,000
Americans, call on the German Embassy in Washington to protest against Hitler’s “unbridled provocation in his
Nuremberg speech”.

Senator Tydings is renominated by the Maryland Democrats despite President Roosevelt’s opposition.

Sept. 15 . — President Roosevelt is reported to be deeply concerned over the European situation and the preservation
of peace.

Aides of Resident Commissioner Quintin Paredes in Washington state they have received instructions to turn over
the office to J. M. Elizalde.

J. R. Cobb, British motorist, sets a new automobile speed-record of 350.2 miles an hour at Bonneville Flats, Utah.

Sept. 16 . — Reported from London that President Roosevelt has urged Bernard Baruch, financial adviser, and head of
the War Industries Board during the World War, to hasten his return to the United States.

Other Countries

Aug. 12 . — Fighting on the Siberian-Manchurian border ceases at noon. The Japanese Foreign Office releases an
abridged text of the truce agreement and the newspapers comment guardedly as it is clear Japan made the greater
concessions. Terrorists throw a number of bombs at Japanese establishments in Shanghai on the eve of the
anniversary of the outbreak of hostilities there.

Britain’s recent warning to Italy against sending fresh troops and materials in aid of General Francisco Franco,
causes tension in Italy and responsible persons admit they have lost hope that the Anglo -Italian friendship pact will
be effectuated. Reports from France indicate that it will wait only a week for an assurance that all parties will abide
by the provisions of the Non-intervention Committee’s proposals before again throwing open the Pyrenees frontier
to allow arms to reach the loyalists. To date, while the loyalists have accepted the provisions. Franco has remained
noncommittal for a month. In retaliation for Italian restrictions imposed on travelers from France, France imposes
similar restrictions.

Reported that 1,300,000 German reservists have been called to the colors, perhaps to influence Czechoslovakia to
capitulate to the Sudeten German minority demands.

Aug. 13 . — The Japanese War Office announces that a commission composed of 3 Japanese and 3 Russian officers
have started an investigation as to the military positions held at the time of the truce and that the latter have
recognized the Japanese occupation of Chankufeng hill pending final adjustment.

During a day of disorder in Shanghai, U. S. Marines protest against the action of 3 Japanese believed to be army
officers who, threatening a Chinese in the American defense sector, drew their guns on the Americans. After a
scuffle the Japanese were overpowered and turned over to the Municipal Police as thugs.

Reported from London that Franco has informed Britain he will reply in a few days to the Non-intervention
Committee’s proposal; believed that his delay has been due to a desire to capture the mercury mines in Estremadura
before consenting to the withdrawal of foreign volunteers, Italy reportedly having urged Franco to seize the mines so
he will be able to pay for some of the arms and munitions Italy has furnished. The Italian-French frontier is virtually
closed to nationals of both countries.

Aug. 14. — War-fear grips Europe as German preparations for army maneuvers assume the proportion of a general
mobilization with almost the entire nation placed on a war -footing.

Aug. 15 . — Heavy foreign military patrols continue to guard Shanghai International Settlement, the situation being
beyond the control of the police; believed that the Japanese army’s “Special Service Bureau” has gotten out of
control of the more conservative Japanese officers and is instigating much of the terrorism.

Premier Milan Hodza of Czechoslovakia is reportedly prepared to take a strong stand should the Sudeten Germans
attempt to use Germany’s show of force to obtain satisfaction of their extreme demands. German spokesmen claim
Germany’s neighbors are unnecessarily jittery over “exaggerated, disturbing reports”.

Aug. 16 . — Russians and Japanese again come close to bloodshed when the latter take advantage of the truce to
advance their lines, but withdraw on receipt of a Moscow warning that Russia would consider "the armistice
violated”, but Russian government is still dissatisfied at the attitude of Japanese officers in the field who refuse to
sign maps snowing the present positions, saying they are “awaiting instructions from the higher command”.
Deadlocks between Chinese and Japanese troops in different areas continue and cholera is said to be ravaging
Japanese troops in the Anking-Hukow sector. Some 20 large Japanese bombers maneuver over the International
Settlement despite the protest of the Municipal Council. The Japanese press states that the American forces in the
American defense zone are “treating the Japanese like enemies.”

The British and French general staffs are reported to believe that the first few days of the German maneuvers reveal
that Germany is not ready for any major military action, in view of which they consider it unnecessary to enlarge the
scope of the maneuvers they themselves have been carrying out without publicity. Czechoslovakia is reported to
have mobilized some 350,000 men. Belgium holds maneuvers on the largest scale since the World War.

Col. Charles A. Lindbergh is reported on his way to Moscow to witness the annual Russian air show.

Aug. 17 . — The Japanese Cabinet reaffirms the decision to continue the China hostilities until the Chiang-Kai-shek
regime is crushed. Lieut. Gen. Kenji Doihara arrives in Shanghai reportedly to smooth out the friction between the
Japanese and the authorities of third powers.

The negotiations between the Czechoslovakian government and the Sudeten Germans open in Prague and the latter
decline to accept the government’s minority proposals although they do not refuse to continue negotiations. Stocks
on the Berlin bourse sag and the Hitler regime is reported to be wobbling under economic pressure and the people’s
unwillingness to upset the peace in Central Europe, according to an International News Service report.

Spanish rebel troops are within 10 miles of Almaden, rich mining center. Franco is reported to have balked at the
plan for getting foreign fighters out of Spain, and Italy is reported to have resumed its anti-British radio broadcasts.

British, French, and Chinese spokesmen praise Secretary Hull’s speech, but a German spokesman states the United
States is “trying to play the role of a moral schoolmaster to the entire world”.

Aug. 18 . — Chinese claim the recapture of Tsinan, Shantung capital, and have also cut the Tsinan -Tientsin and the
Tientsin-Pukow railways; train-service between Tientsin and Peking is also interrupted because of Chinese
destruction of many bridges. Japanese air-raids over Chinese cities continue to take a huge toll of life. Colonel
Kusomoto, Chief of the Japanese army’s special service section, apologizes for the incident involving U. S. Marines
and 3 armed Japanese. The Superintendent of the International Settlement Police in the Chinese section is killed by 3
gun-men when alighting from his automobile in the heart of the city.

The German semi-official publication. Diplomatic and Political Correspondence warns Checho-Slovakia to “cease
dodging”.

Aug. 19 . — Premier Fuminaro Konoye thanks Italy for its attitude toward the Sino-Japanese conflict and states that a
“universal civilization’ could result from Italo-Japanese cooperation against communism. The War Office issues a
“stand-by’ order to all members of the recruit division, a special group of men aged 24 to 34 who have received no
active military training. Reported from London by the United Press that following a conference between Foreign

Office and Japanese Embassy officials, that Britain is not prepared to discuss "granting credits to help the
development of China” until specifically assured that foreign rights will be respected. The London Times states
editorially that Japan is facing economic and financial problems and “can not ignore the desirability of outside
assistance”.

The British steamer Stanbrook is sunk by rebel Spanish planes in Valcarca harbor, south of Barcelona; another
British ship was also attacked, but missed.

British commentators acclaim President Roosevelt’s speech in Canada as embodying a new and vital pledge, making
the British-French alliance more formidable in the face of the menace of the heavily-armed totalitarian nations. The
Montreal Star calls the speech an expression of the “Roosevelt Doctrine”, “really a new version of the Monroe
Doctrine”. In Rome the speech is criticized as wholly unnecessary and made only for election purposes.

Aug. 20 . — Japanese reported to have taken Puchow, southern terminus of the Tatung-Puchow railway.

A decision of the Czecho-Slovakian government to appoint Sudetens to superior administrative posts is welcomed
by them as a friendly gesture but not as a substantial contribution toward the satisfaction of their demands.

A mission headed by the Hungarian Regent-Admiral Nichols Horthy and including Prime Minister Bela Imredy and
the Foreign Minister leave Budapest for Germany where they are to be lavishly received.

Aug. 21 . — Franco sends his long-delayed reply to the International Non-intervention Committee, not rejecting its
proposals for a withdrawal of foreign troops outright, but making so many counter-suggestions as to amount to as
much.

Aug. 22 . — Sun Fo, son of the late Dr. Sun Yat-sen, states in Honkong that the German alliance with Japan is aimed
at the British Empire. Guerilla fighters battle Japanese near Shanghai’s Hungjao airdrome, burning a number of
bridges, and inflicting heavy casualties.

Over 100 Hungarian Nazis are arrested in Budapest for creating disorders during the St. Stephen Day celebration;
officials are disturbed by the fact that the renewed Nazi activity coincides with the absence of their leaders on a visit
of state to Germany.

Italy replies to Britain that allegations regarding the sending of fresh troops and war materials to Franco are without
proof. Italy orders a special census of Jews; school principals have been ordered to eliminate Jewish teachers
effective October 1 .

Aug. 23 . — The Japanese army moves its headquarters from Shanghai to Nanking and begins an intensified offensive
throughout the Y angtze area.

A preliminary agreement is reported to have been reached between Hungary and members of the Little Entente
(Czechoslovakia, Yugoslavia and Rumania) covering a wide range, including a pact of non-aggression; believed
Italy played a part in bringing about the agreement which is considered a set-back to Germany.

Italian Foreign Minister Count G. Ciano is reported to have admitted to the British Charge d’Affaires that Italy is
sending officers, men, and munitions to Spain, but that the men are considered “replacements” and not re-
enforcements.

French labor leaders rally their forces to fight for the retention of the 40-hour week after an announcement by
Premier Edouard Daladier that because of international difficulties the 40-hour week must be sacrificed to
strengthen the national economy and defense; the Minister of Labor and the Minister of Public Works have tendered
their resignations.

Aug. 24 . — Japanese war planes attack an airliner of the Chinese National Aviation Corporation, bound from Canton
to Chungking, and force it down into the Pearl River about 40 miles from Honkong, continuing to bomb and rake
the plane with machine-gun fire and sinking it possibly to insure that there would be no survivors. The American
pilot, H. L. Wood, the Chinese co-pilot, the radio-operator, and the steward escape by swimming ashore all the rest
of the 19 people aboard, including 2 women and a small child, all Chinese, being reported killed. Reported that Sun
Fo had intended to take the plane, but changed his plans. The gunboat U. S. S. Mindanao is searching for possible
other survivors. Japanese censors are halting all incoming dispatches. Before the outbreak of hostilities, the CNAC
was jointly operated by the Chinese government and the pan-American Airways Company and there has been a tacit
American-Japanese understanding that the CNAC liners would not be attacked.

Japanese troops, after suffering heavy losses yesterday and strongly reenforced, land on the west bank of Poyang
Lake. They also claim the capture of Tuichang, strategic city on the Yangtze south bank.

The Radical Socialist Party decides to back Daladier’s decision to abandon the 40-hour week in view of the need of
strengthening French defenses.

The Fascist Party and the Catholic Action in Italy reach an agreement permitting the members of each to be
members of the other, but Catholic Action is to limit its activities to purely religious and spiritual matters.

Aug. 25 . — The Japanese naval Spokesman in Shanghai tacitly warns that civilian airplanes flying over what the
Japanese claim is a war area extending from Pakhoi, near Canton, to Sian, are liable to be shot down. He states the
CNAC plane yesterday was flying over an area of hostilities, attempted to escape from Japanese patrol planes, and
was assumed to be an enemy bomber, claiming it was attacked before it was fully identified. He declares that while
there was no attempt made to shoot down this particular plane, the Japanese authorities can not guarantee that
CNAC planes will not be attacked in the future. He states the planes frequently carry Chinese military officials. “It is
an established provision in international rule that non-combatant aircraft passing zones of hostility do so at their own
risk. All aircraft companies must know this and realize the responsibility is theirs and that they can not claim any
damages if an accident occurs”, he states. China accuses Japan of using poison gas in northern Kiangsi, sending the
accusation to all members of the League of Nations.

Chancellor Adolf Hitler stages a big military show for the Hungarian visitors and is reported to have indicated to
Horthy that he envisions a three-way collaboration between the Reich, Hungary, and Italy. France reaffirms to
Britain its determination to fulfill its obligations under the Franco-Czecho-slovakian treaty if Germany marches into
Czecho-slovakia. According to London reports, Britain is expected to issue a warning to Germany that if it attempts
to annex the Sudeten area in Czecho-slovakia it would be difficult to avoid a general European war.

Nearly 80,000 Spanish troops are defending positions in the Ebro sector against some 60,000 rebels and their allies,
with heavy fighting in progress, the rebels having effected a liaison and holding a continuous line through southern
Spain from Toledo to Cadiz and Cordoba.

Aug. 26 . — Ambassador Joseph C. Grew protests to the Japanese Foreign Office against the destruction of the CNAC
air-liner stating that the action contravened assurances that neutrals would be protected, “jeopardizing lives of
American as well as other noncombatant occupants of unarmed civilian planes engaged in clearly recognized and
established commercial services on a regularly scheduled air-route . . . Not only was the life of an American national
directly imperiled but loss was also occasioned to American property and interests as Pan-American Airways has a
very substantial interest in the China National Aviation Company”. The Chinese claim the recapture of Juichang.

The German government-controlled press opens a new editorial offensive against Czecho-slovakia with a secondary
fire directed against Britain and demanding that it push through a speedy solution of the Sudeten problem.

Premier Daladier obtains parliamentary support for a measure making the 40-hour labor week elastic enough to
enable a speeding up of the work of national defense. It is pointed out that Hitler effected his Austrian coup during
the up-set in the Blum Cabinet.

The Mexican government seizes more American-owned farm lands to be operated by as agrarian communities.

Renewed Arab-Jew disturbances in Palestine lead to loss of 38 lives.

Aug. 27 . — The British Ambassador to China is reported to have formally protested against Japanese censorship of
incoming messages; the Japanese spokesman states the censors use discretion in handling business messages and
guaranties that the censorship will not result in financial losses. The Tokyo War Office spokesman denies Chinese
charges that Japanese forces are using poison gas, stating that what the Chinese saw may have been “harmless
smokescreens”. The gunboat, U. S. S. Monocacy in the Yangtze near at its anchorage off the Standard Oil Company
wharf Kiukiang has a narrow escape as two mines blow up near the ship only a few hours after Japanese mine-
sweepers had supposedly carried out thorough sweeping operations; later, two other mines, apparently loosed by the
explosion drifted down close to the Monocacy.

The British Ambassador to Germany comes by plane to London to discuss the situation with Prime Minister Neville
Chamberlain and Foreign Secretary Lord Halifax. Hugh Wilson, American Ambassador at Berlin, flies to Paris to
confer with William C. Bullitt, American Ambassador to France. Sir John Simon, Chancellor of the Exchequer, in a
semi-official statement made at Larmarck, Scotland, calls upon Germany to cooperate in the maintenance of peace
and warns that any invasion of Czec ho -Slovakia might force Britain into war; he emphasize the conciliatory attitude
of the Czecho-slovakian government and expresses the hope it will meet with a “constructive response”. He praises
President Roosevelt’s Ontario speech and the recent speeches of Secretary Hull, stating these “awaken a responsive
echo in many British hearts”. Berlin officials criticize Simon’s speech as side-stepping the real issue which concerns
the “moral and legal rights” of the Sudetens, and declare that Hitler has repeatedly emphasized his desire to effect a
peaceful solution. Rome comments are to the effect that the speech should have been addressed to Prague instead of
Berlin. Winston Churchill states: “It is most grievous that at present the fate of Europe should be in the hands of a
single man. . . For a country which itself is not menaced by anyone and which fears nobody to place more than a
million and a half soldiers on a war-footing is a very grave step”. Reported that 42 British warships are steaming
into the North Sea for autumn maneuvers.

Pope Pius again criticizes Italy’s racial creed.

Aug. 28 . — Washington officials express the belief that the mine explosions near the Monocacy were accidental.
Foreign Office officials say that an immediate reply to the American protest against the destruction of the CNAC
plane is impossible because of the discrepancies in the American and Japanese versions of the incident which
requires additional investigation. Both the CNAC and the German Eurasia Corporation have suspended their
services between Honkong and Hankow and the Chinese press protests, stating that this is just what Japan wants and
that at least the mail service should be continued. The Chinese retake Tsientshan and Taihu on the Yangtze north
bank and the Japanese are falling back to Anking.

Reported that Nazi leaders are over-ruling German military officials, the former demanding a more forceful stand in
the Czecho-slovakian issue. Catholic priests all over Germany read a pastoral letter charging the Nazis with attempts
to destroy the Chinch and up-root Christianity.

Aug. 29 . — A Chinese guerilla band invades the western borders of Shanghai, sets fire to a bridge, hoists the
Kuomintang flag, and gets away before Japanese troops could dash to the scene. Some 400,000 Chinese troops and
100,000 Japanese are locked in bloody battle on a 100 mile front in the Yangtze Valley. On the Anhwei front the
Japanese win an important victory in taking Liuan. The Foreign Office spokesman states that the Japanese airmen
did not fire on the CNAC plane after it landed in the river and that he believes the United States government will
accept the Japanese version after a full investigation.

In response to inquiries from Berlin, Russia, Rumania, and Yugoslavia are said to have warned that they would help
to defend Czecko-slovakia in case of an invasion; France has also again warned Germany. Prague reports state that
Lord Runciman, British mediator, has warned Konrad Henlein Sudeten leader, that Europe is on the brink of war
and that he should immediately agree to the concessions made by the Czecho-slovakian government.

Aug. 30 . — Japanese authorities reported to have informed Admiral Harry Yarnell that due to military necessity,
the Monacacy can not be permitted to move either up- or down-river, but that the Japanese Navy is willing to
provide food, fuel, and mail facilities to both the United States and the British ships in the region. Japanese report
that Gen. Chiang Kai-shek may have been wounded in an air attack on Kingshan, 125 miles from Hankow yesterday
where some 200 bombs were dropped, killing some 1000 people. The Japanese take Hwoshan, Anhwei province.
Chinese state 2 whole companies were wiped out by poison gas southwest of Laohushan, in the Kuling sector,
yesterday, this being the third time poison gas has been used in this area.

The Sudetens issue a bulletin demanding local self-government “similar to that of Ireland”, and Germany addresses
a note to Britain advising that it forcefully warn Czecho-slovakia to accede to the demand. Informed sources state
the German high command believes Germany could not stand up for more than 2 months against the potential
combination of Czechoslovakia, Britain, France, Russia, Rumania, and Yugoslavia; Poland is taking a reserved
attitude. Ambassador Kennedy calls on Chamberlain and receives full information as to the situation which he is
said to have reported in detail to President Roosevelt.

Aug. 31 . — Shanghai is reported nervous for fear that the Japanese army might seize the city in case of a European
war. American business men in Shanghai send an urgent message to Secretary Hull recommending all possible steps
be taken to terminate the Sino-Japanese hostilities, and to secure the restoration of the Hongkew District to the
International Settlement, the return of American property being used by the Japanese military, the breaking up of the
blockade of the Yangtze river and of other transportation routes; the message states that Japanese encroachments are
growing, and that losses are enormous and will soon necessitate the withdrawal of numerous firms and the
curtailments of mission, educational, and medical activities. The American business community in Shanghai is
reported to be planning to send a permanent representative to Washington and to attempt to organize a permanent
bloc of congressmen to sponsor their interests. Japan delivers a note to the American Embassy in Tokyo in reply to
the American protest against the destruction of the CNAC air liner stating that "the company to which the aircraft
belonged, being Chinese, is the juridical person in the incident, which is not one that involves Japan directly with
any third power”; the Japanese government believes the circumstances justified the attack as the plane was within
the Japanese field of military operations and “acted in such a manner as to justify the suspicion of being a Chinese
military craft; the Japanese planes ceased attack, the note declares, after they indentified the plane. The Japanese
spokesman in Shanghai warns of the danger of flying non-combattant planes over the Yangtze Valley war zone and
states the army desires it be notified of any such prospective flight at least a week in advance and be given a
description of the plane and a list of all aboard, the army reserving the right to refuse permission for such a flight.

In spite of the government propaganda campaign, the German public is reported to be nervous, uninterested in the
future of the Sudeten Germans, and in dread of the barest possibility of war. The British Ambassador to Germany
returns to Berlin with instructions to deliver a warning and an appeal to the German government, and a similar
warning is said to have been prepared by France. In an attempt to ease the tension, the Czecho-slovakian
government repeals a recent edict that prohibits Nazi political meetings, salutes, and emblems which the Sudetens
challenged as unconstitutional. Italian officials state Italy’s position is that of a neutral observer, although friendly to
Germany. It is said, however, that Italy has warned Henlein it will not fight to back his claims.

The Riga correspondent of the London Times reports that the Soviet naval ministry has admitted that the chief
Russian admirals and naval experts were executed a few months ago, including Admiral Orloff, Commander-in-
Chief, the head of the Naval Academy, and the commanders of the Baltic Fleet, the Pacific Fleet, and the Far
Eastern Amur River flotilla; “The Red Navy has not today a single officer who occupied a high post last year”.

Sept. 1 . — Chinese reported to have scored a smashing victory near Juichang on Y angtze south bank in spite of heavy
Japanese reenforcements. The worst typhoon in 32 years hits Japan causing over 100 deaths and doing great damage
to ships and houses.

Henlein leaves for Berlin to confer with Hitler. Believed that the Czecko-slovakian government has offered to divide
the country into cantonal districts similar to the Swiss system, and a grant to the Sudetens of one -third of all new
appointments to the civil service and other official posts until the representation amounts to 23%, equal to the
population proportion.

All private schools, religious and secular, are ordered closed in Austria, the Nazi party to assume exclusive control
of the education of youth.

Italian government issues decree ordering all foreign Jews residing in Italy, Libya, and the Dodecanese islands to
leave within 6 months, regardless of their religion, exemption being made if one parent is not Jewish; some 10,000
out of a total of 44,000 are affected.

The Sultan of Johore, enormously wealthy, 65-year-old Malayan ruler, leaves on a 2 or 3 year vacation,
arrangements having reportedly been made for him to meet Hitler and Mussolini; later he may proceed to the United
States.

Sept. 2 . — Continuing uneasiness over the Czecho-slovakian situation leads to an intensified exodus of European
capital to the United States.

The Italian government bans all Jewish teachers and students from the public schools. Some 1500 Jewish professors
and 8000 university students are affected.

Sept. 3 . — Following a meeting of the French Cabinet it is reported that the government will urge Czec ho -Slovakia to
“consider any concessions short of actual dismemberment’’.

Reported that some 800,000 Germans in Poland will form a union and that the government has no objection
provided the members remain loyal to Poland.

Sept. 3 . — A heavy Japanese air armada blasts Chinese defenses along the Nanchang railway, great destruction being
done in Nanchang and also at Tehan. The Japanese capture Mahuiling.

Germany advises Britain it will hold naval maneuvers off Scandinavia coincident with the British manuevers off
Scotland. The Rhine frontier opposite Strasbourg is heavily reenforced.

Demonstrations and strikes break out in France against Daladier’s plan to scrap the 40-hour week in the war
industries.

Anti -German riots break out in Bielsko, Polish Silesia.

Premier Imredy declares Hungary will back the interests of Hungarians in Czecho -Slovakia.

Ambassador Bullitt, speaking at Bordeaux at the base of a monument commemorating 161 years of Franco-
American friendship, states: “We hope and pray we may remain at peace with every nation of the world, but, as I
suggested on February 22, 1937, if war should break out again in Europe, no human being could undertake to
prophesy whether the United States would be involved’’. He stresses that the United States would “aid France to help
safeguard peace”.

Sept. 5 . — After repeated set-backs, the Japanese, reenforced, again open a desperate drive on both sides of the
Yangtze. Three Japanese planes machine-gun a Sino-German Eurasiona Aviation Corporation passenger plane and
puncture the wings and the gasoline tanks, but the plane lands without loss of life.

The sixth annual Nazi Party convention, with 800,000 in attendance, opens at Nuremberg to continue for 8 days.
The rush of apprehensive Europeans to convert their currencies into American dollars or gold drives the pound
sterling down to the lowest level since 1935.

Some 50 persons are killed in Santiago, Chile, in putting down a putsch launched by Chilean Nazis, among those
arrested being Carlos Ibanez, former President, who recently returned from exile.

Sept. 6 . — Japanese planes machine-gun a second Eurasian Corporation passenger plane near Hankow; no lives are
lost. China delivers another note to the League of Nations charging the Japanese are using poison gas.

Hitler in a proclamation read at Nuremberg glorifies the German Reich, rejoices in its friendship with Italy,
denounces Bolshevism and the Jews, declares Germany no longer fears any foreign blockade because of the nation’s
economic self-sufficiency, but does not mention the Sudeten problem. The British Ambassador to Germany is
reported to have stated to the German Foreign Minister when he expressed doubt that Britain would fight to aid
Czecho-slovakia: “Then you are mistaken”.

A revolt against Franco is reported brewing in Spanish Morocco.

The Dominican Republic offers the International Refugee Committee to accept a substantial number of German
Jewish expatriates; the Union of South Africa has indicated it will not allow an immigration of Jews.

Sept. 7. — The Japanese capture Hushin and claim the inner line of the Hankow defense is on the verge of collapse.
Hankow authorities announce the temporary suspension of all air services between Hankow and west and southwest
China.

The London Times suggests editorially that if other solutions fail, the Czecks should “permit the Sudetens to secede
to Germany”. Lord Runciman is said to have cabled a strong protest and reported to be considering resigning
because of dissatisfaction with London developments. The government is reported to be alarmed and to be making
hurried efforts to patch up the damage done by the editorial which is interpreted in Germany as showing the British
are weakening. Premier Hodza hands the Sudetens his “last word” in connection with the concessions, but informed
Nazis state they believe they will not be considered sufficient. Hitler is reported to be seeking from Britain “more
effective pressure on Prague to yield still further”. Defense Minister Pirow of the Union of South Africa tells the
Assembly that the Union would not participate in a war in which Britain is involved unless the interests of the
country make this inevitable and only on a mandate of the people. The Executive Committee of the British League
of Nations Union approves a resolution recognizing "the vital importance to all Europe of maintaining the
independence of the Czecho-slovakian state . . . and resistance to any attempt by the German government to settle
the Sudeten question by intimidation or military action.”

Pope Pius is quoted in the L ’Observatore Romano as saying that the fascist racial doctrine “concerns a great and
serious error which reaches the steps of the altar and touches Catholic doctrine”.

Sept. 8 . — Japanese troops on Yangzte north bank walk into a trap and several thousands are reported cut off while
the rest are forced to retreat.

Japan is reported to have assured Germany of its “moral support”. The Italian semi -offi c'vd\ Informaz.ione
Diplomatica warns Czechoslovakia it must “surrender to the reality of the situation in order to avoid an even graver
situation”; Italy’s attitude, it explains, was established during the recent Hitler-Mussolini talks in Rome. Hitler is
said to have urged Sudeten leaders to resume negotiations after they had been halted following reports that Czech
mounted police at Machrischostrau charged into a crowd of Sudetens with whips, Berlin newspapers charging that
the Prague government is no longer master of its own police. Nazi officials state that Hitler will demand a
“plebiscite in the Sudeten districts to give the British a chance to save face upon failure of the mediation because the
“plebiscite idea is democratic”. Czecho-slovakian citizens bring fresh pressure on the government to make no
further concessions, and the government broadcasts a radio appeal for calm, emphasizing it honestly desires to
conciliate the Sudetens. British Trades Union Congress and Labor Party leaders meeting at Black pool, issue a
statement declaring that "no state has a better record of ordered, democratic government in post-war history than
Czecho-slovakia and that no state has treated its various nationalities more generously. . . The government has made
a generous offer to the Sudeten minority, acceptance of which would remove any legitimate grievance. Democracy
forbids dismembering the Czecho-slovakian state. Should Germany make war on Czecho-slovakia, it will brand
itself a traitor to humanity”. The French army and navy are reported ready for action; the labor situation has eased
and dock-gangs and others have speeded up operations. Women in the border regions of Germany and France flock
to the churches to pray for peace.

Sept. 9 . — The Chinese claim the recapture of Kwang-si. The press publishes a manifesto appealing to the League of
Nations to impose economic sanctions against Japan. A Chinese wading in the Whangpoo river at Shanghai is shot
and killed by Japanese soldiers for thumbing his nose at them.

Maxim Litvinoff, Russian Foreign Commissar, arrives in Geneva to attend the League meeting opening next week
and tells the press Germany is “bluffing”. The British government is reported to believe that the Czecho-slovakian
crisis has “reached the explosion point”.

A five-day rebel offensive in the Ebro region comes to a complete stand -still which is attributed by them to the
torrential rains.

Sept. 10 . — The Chinese reoccupy Shuanchenyi and Tahopu.

Field Marshall Hermann Goering, head of the air force, delivers a scathing address at Nuremberg and prophesies
that “if Fate should will another war, Germany will not lose, but win. He brands Czecho-slovakia “a little state
guilty of oppression, a cultureless people, coming from none knows where, and oppressing people of culture,
pigmies themselves, but backed by Jew and Marxist demons with promises they will never keep; the air service is
technically perfect and numerically the strongest, he states “never in history has Germany been so strong”. He
declares Germany is self-sufficient and invincible and that “what our Fuehrer does is always right, therefore we will
follow wherever he leads us.

Sept. 11 . — Ambassador Wellington Koo delivers a note to the League requesting the application of sanctions against
Japan unless it agrees to discuss peace through the League.

Hitler in an address to the Storm Troopers makes his first reference to Czechoslovakia stating, “I see before me a
Germany happy in unity, but there are other Germans to whom this happiness is still denied. Our hearts fly out to
them as we know their hearts are with us. . . You make it easy for me to be a fuehrer. I can rely blindly upon you. I
see about me millions of unflinching, nay fanatical national socialists. . . We are bound by a spirit that is determined
to capitulate before nobody”. Children chanted at each pause, “We thank our Fuehrer”. President Benes states in a
radio broadcast “1 know our state will emerge victorious from its present difficulties. . . I have an unshaking faith in
our state’s health and strength and its powers of resistance through its brilliant army, indomitable spirit, and the
devotion of the entire population”. He emphasizes the government’s wish to cooperate with all its neighbors,
“especially our greatest neighbor, Germany”. French officials are reported annoyed by Britain’s hesitance to warn
Hitler flatly that it will fight if any war is started by an invasion of Czecho-slovakia, declaring that Britain is playing
with fire.

After nearly 7 weeks of savage fighting in the Ebro region, the situation still remains unsettled, and rebel losses due
to deaths, wounds, capture, and desertion are claimed to be 70,000.

Sept. 12 . — Hitler speaks passionately for 78 minutes at Nuremberg, declaring that Germany is determined to see to it
that the “harrassed German minorities” in Czechoslovakia get their rights of self-determination, regardless of the
opposition of rival powers. He claims they are being “systematically ruined and doomed to slow extinction” and that
the cause of peace will not be served by creating the impression that Germany is indifferent to the fate of the
3,500,000 Germans in that country. He states Democracy and Bolshevism are arranged in a solid front against Nazi
Germany and that it is a “bloody mockery of history that the democracies are allied with the most brutal dictatorship
in the world”. He fails to make clear whether Germany would use force to achieve its ambitions in Czechoslovakia
and diplomats believe the speech was purposely ambiguous to avoid a crisis. The Czecho-slovakian government
presents Britain with a complete outline of its position and declares it would not accept a plebiscite and is
determined to resist German encroachment. Ambassador J. P. Kennedy calls on Chamberlain. Britain warns Hitler
that Britain and France would certainly interfere if Germany invades Czechoslovakia. The London Times states
Britain is not bluffing and that if Germany wants a peaceful settlement it must contribute to it. The Paris press hails
the British pronouncement as the fullest factor for peace that could have been brought into play at this moment;
“England has spoken, has done what she failed to do in 1914; Germany now knows what adversaries she would
meet and this should counsel prudence at Nuremberg”. Former Premier N. Jorga, now adviser to King Carol, states

in a speech that Rumania would join with the democracies in the event of war, and, while not naming Germany,
refers to the “hatred and brutality with which unjust demands are being made and the banners of death and
destruction waved in the hands of fanatics”. At the opening of the League of Nation’s 19th session, the New Zealand
representative warns that “even those countries which appear to be most remote may not be neutral in the next war”.
Eamon de Valera, Prime Minister of Eire, is elected President of the Assembly.

Sept. 13 . — Rioting breaks out in the Sudeten areas and several people are killed, alarming Prague officials who fear
the disorders may furnish a pretext for German aggression, and martial law is declared. Henlein demands the
government withdraw the martial law order and withdraw all Czech police from the Sudeten areas within 6 hours. A
frenzy of patriotic ardor sweeps Germany, the people chanting “One Reich, one people, one Fuehrer!” A Soviet
spokesman at Geneva states Geneva is the logical place from which to make a reply to Hitler. The German press
states anschluss is the only possible outcome of the situation. A communique is published in Rome stating that
“only separation of the Sudeten areas from Czecho-slovakian sovereignty” will avert war. The French press
expresses surprise at what they call Italy’s “about face”. Daladier is given emergency powers.

Sept. 14 . — The Japanese take the Matouchen forts above Kiukiang on the Yangtze. Twelve U. S. Navy men are
carried from Shanghai to the U. S. S. Monocacy by a Japanese bomber as replacements.

Ignoring Henlein’s “ultimatum”, the Czecho-slovakian government declares martial law in three more Sudeten areas
amid increasing violence as armed Sudeten legionaires from across the German border reenforce the rioters. As the
French government notified some 2,000,000 reservists to be ready for instant mobilization, the Paris press suddenly
turns front and urges the government to seek peace at any price. King George returns to London from Scotland, as
mobilization plans are discussed in a Cabinet meeting. Reported from Geneva that of the British Dominions only
New Zealand is willing to fight to prevent an invasion of Czecho-slovakia, this explaining Britain’s reluctance to
take a firm stand, but Ottawa officials express amazement, stating that “Canada has not been asked to give
commitments and that Britain does not need assurances of Canada’s support”. The Japanese Foreign Office
spokesman states Japan is “willing to join Italy and Germany in the spirit of the anti -Comintern pact; this passes
almost unnoticed in the United States, being taken as merely a general statement, but observers believe that in case
of a European war American “policing” responsibilities in the Pacific would be greatly increased and a decision
regarding the retention of naval bases in the Philippines would certainly have to be postponed. Reported from
Geneva that there is reason to believe that Rumania has agreed to allow Russia a 5-mile-wide corridor for passage of
troops in case of a German attack on Czecho-slovakia. In a move without parallel in history. Prime Minister Neville
Chamberlain, in a spectacular exchange of messages, arranges for a meeting with Hitler at Berchtesgaden tomorrow.
Reuter’s states the move received the immediate strong approval of Daladier and President Roosevelt, and at the
news London crowds weep and dance in the streets. Amazement amounting almost to disbelief is registered in
Washington official circles at the news of Chamberlain’s forthcoming visit. Faced with the magnanimous British
move, it is believed that Hitler will have no alternative but to parley, according to London reports. It is said
Chamberlain had private information that Germany was preparing to march into Czechoslovakia as he did into
Austria. The Journal de Moscou blames British indecision for the crisis and charges that Czecho-slovakia is being
handed over to Hitler on a silver platter because of British pressure on Prague; it advocates joint action by France,
England, and Russia, with the eventual participation of the United States.

Sept. 15. — Lloyd’s cancels all contracts involving war risks, effective in 48 hours. Henlein issues a proclamation
demanding German annexation of the Sudeten areas; the Czecho-slovakian government proclaims martial law in 5
more Sudeten districts and radiocasts an appeal to the people to be quiet and to trust the government. Lord
Runciman confers with Henlein lieutenants in an effort to halt the disorders. The Associated Press states that Prague
officials would reject British overtures to sacrifice Czecho-slovakia and that the people are ready to defend their
country’s integrity. It also reports from London that American born Lady Nancy Astor and Lady Austin
Chamberlain, widow of the Premier’s half-brother, influenced him to make the trip to Germany; the former leads the
pro-Germany “Cliveden set” and the latter has just returned from a tour of Spain as Franco’s guest. Washington
officials are said to consider the report of the coming conference was “the first ray of hope”, and Premier William
Mackenzie King of Canada states the visit is “emphatically the right step”. A Berlin spokesman states “much is
expected from the visit in the interest of European peace; the British Premier’s offer was accepted in the same spirit
as he made it and is appreciated here; it shows Britain recognizes the seriousness of the situation which has reached
a stage making speedy settlement imperative”. Usually reliable Paris sources state that France would be willing to

permit German anschluss of the Sudeten areas if it could be peaceful. Opinion in Geneva is divided according to the
Associated Press, some saying Chamberlain’s trip is “humiliating”, borders on surrender, and spells “English
anschluss”, while others say that if Hitler is not ready for war, Chamberlain has opened the way out of a dangerous
bluff, permitting the German dictator to make a demonstration of sacrifice for peace. The United Press states
authoritative sources believe Czecho-slovakia may be obliged to scrap its alliance with France and Russia.
The L ’Observatore Romano calls on all nations to show “the virtue, merit, and strength not to resort to force” as the
world would agree in no sense to the sacrificing for 3,500,000 Sudeten Germans the lives and means of life of
millions of other men. Chamberlain arrives at Berchtesgaden at 4 P. M. on a special train from Munich, which he
reached in a specially chartered plane from London, accompanied by Sir Horace Wilson, chief industrial adviser to
the government, and William Strang, Foreign Office expert.

Sept. 16 . — Chamberlain has a three-hour interview with Hitler and returns immediately to London, accompanied as
far as Munich by Foreign Minister J. von Ribbentrop. According to Reuter’s, he looked extremely tired and
preoccupied after reaching Munich, but the United Press states he looked calm and unworried, and his whole
entourage looked glum-faced while German officials took little pains to conceal their satisfaction. In Berlin it is
reported that Hitler demanded cession to Germany of the Sudeten areas and binding assurance that Czecho-
slovakia’s foreign policy will be in harmony with Germany’s; also that Czecho-slovakia should fit itself into the
German economic system, Germany for instance, to have the deciding word as to the destination of the output of the
Skoda munition works at Pilsen. Said that Hitler left no doubt that he might feel it necessary to resort to drastic
measures. Chamberlain is said to have come apparently prepared to concede some form of anschluss, but whether
Britain and France are ready to support Hitler’s demand for a virtual protectorate is the question believed to have
prompted his immediate return to London. The general feeling in Germany is reported to continue to be a general
abhorrance of war. Czecho-slovakian government is said to have decided to dissolve the Sudeten German Party and
to arrest Henlein on charges of high treason. The Slovak People’s Party deserts the Henleinists and comes over to
the government. Anti-German riots break out in Belgrade Yugoslavia, the crowds shouting, “Down with Hitler and
fascism!”

Source: Jorge B. Vargas Museum and Filipiniana Research Center, University of the Philippines Diliman

Hartendorp, A. V. H. (Ed.). (1938). News Summary. Philippine Magazine, 35(10), 453-457, 490-494.

News Summary, Philippine Magazine: September 15 - October 15, 1938

News Summary
The Philippines

Sept. 17. — U. S. High Commissioner Paul V. McNutt is made a member of the Philippine Bar in the presence of
President Manuel L. Quezon, members of the Supreme Court, and other high officials.

Sept. 19 . — Edgar Snow, noted correspondent and writer on China, arrives in Manila and tells the press that Japan
holds only narrow zones along the railways and highways. “We Americans speak of our Far Eastern policy as
isolationism or neutrality. That is nonsense. Japan’s army is moving into China on American motor cars, using
American gasoline. Its airplanes are often American-made or are manufactured according to patents sold by us, or
with essential parts made by us. Many of the bombs Japan drops over China’s cities, killing and maiming thousands
of innocent noncombattants, are made with American scrap-iron.

Prince Louis Ferdinand, grandson of the former Kaiser, and his Russian bride. Grand Duchess Kira, arrive in Manila
on their honeymoon voyage and begin a long round of entertainments.

Announced that Assemblyman Vicente Rama has accepted the position of Mayor of Cebu to take the place of Mayor
A. V. Jacinto, resigned.

Sept. 22 . — Rafael B. Alunan, Malacanan-Assembly liaison officer, writes a letter to a prospective candidate who
wishes to oppose Assem. Maximo Kalaw, that "in a democracy no man or government can prohibit anybody from
presenting his candidacy for office; that is his constitutional privilege. As the leader of the Nacionalista Party,
however. His Excellency [President Quezon] expects every Nacionalista to support the official candidate of the
Party”. Some 54 incumbent assemblymen have already been proclaimed official candidates, besides 9 others,
including Secretary of Justice Jose Yulo.

Sept. 23 . — Announced that Secretary of Interior Elpidio Quirino and Secretary of Justice Yulo have resigned their
posts; both are candidates for the Assembly.

Sept. 25 . — Ilocos Nacionalista leaders, taking literally President Quezon’s recent statement that the choice of
Speaker is exclusively the Assembly’s prerogative, despite insistent reports that the administration’s choice is Yulo,
formally launch the candidacy of Quirino for the position, the latter having made no direct statement however, but
declaring in a speech that the Ilocano provinces “must be adequately represented in the central government”; he is
opposed by Assem. Benito Soliven who seeks reelection.

Benigno Ramos stuns a Sakdal meeting at Santa Cruz, Laguna, by announcing the fusion of the Sakdals with the
Nacionalistas “as there is no use fighting a party with similar aims”. Manila Nacionalista leaders state they know
nothing of the move, that such a proposal would have to be ratified at respective party conventions, and generally
consider the matter a joke.

The National Rice and Corn Corporation brings in 46,000 sacks (2,600,000 kilos) of rice from Saigon, paying full
duty of P2.50 a 100 kilos because a state of emergency has not been declared to exist.

Sept. 26 . — Malacanan announces that former Representative Agustin Alvarez of Zamboanga has been named
Governor of Bukidnon.

Sept. 27 . — At a luncheon in honor of Secretaries Yulo and Quirino, President Quezon praises their records in office
and states that their resignations offer a lesson to the country and show that men who have risen to Cabinet positions
do not thereby acquire a sort of title to the office and should not be considered as having failed when they leave it;
he states that their seeking election to the Assembly sets a patriotic example. He declares that in the selection of his
Cabinet he will not consider what provinces his appointees come from but only the interests of the country at large.

“It is important that we should feel like Filipinos, nothing more and nothing less. There are no separatists here, I
believe, but if there are, let us throw them overboard; they are better dead than alive. The issue of separation of
provinces has been settled in the American civil war and that issue has been settled for us, too. There will be no
‘nationalities’ here. We are one nation and we will live and die as one nation. . . We must put an end in the National
Assembly to the feeling of responsibility to one district. . .”

The Division of Aeronautics issues a commercial license to the first Philippine -made aircraft, a snipe low-wing
monoplane, allowed to carry one passenger and baggage to any part of the Philippines; the owners are authorized to
construct sister ships.

Vice-Admiral Jules le Bigot, commanding a French squadron on a visit to Manila, in a press interview notes the
harmony of American-Philippine relations and praises the mutual goodwill existing between the two peoples. He
states the Philippines would do well, in view of the difficulty of small nations nowadays to survive alone and
unaided by a bigger nation, to remain under American protection.

Sept. 28 . — Announced that H. M. Cavender, General Agent of the Dollar Steamship Lines in Manila, has been
appointed Manager of the Manila Hotel.

Sept. 29 . — Announced that President Quezon has accepted the resignation of Quintin Paredes as Philippine Resident
Commissioner in Washington and has appointed Joaquin M. Elizalde.

Sept. 30 . — The National Rice and Com Corporation reduces the price of rice from P6.85 to P6.50 a cavan, effective
October 8, because the “harvest is well under way in the southern provinces”; it is indicated the price will be further
lowered later.

Oct. 2 . — Some 20,000 men and women, representing 21 organizations, attend a meeting in San Fernando,
Pampanga, to celebrate the organization of the Collective Labor movement, advance demands for higher wages,
shorter hours, and better working conditions, and express the solidarity of the Philippine workers with the working
class throughout the world. A message from President Quezon, written at the request of Pedro Abad Santos,
Socialist leader, is read, stating that “every fair-minded man will have to admit that the workingman in the
Philippines is not receiving his due”, that it has been his “most earnest endeavor to ameliorate his lot and secure for
him just and equitable treatment”, but pointing out that the problem here is complicated due to an “archaic system
inherited from our ancestors” and that it requires not merely the “enactment of progressive laws that have been
found successful in other countries” but their intelligent and constructive adaptation to the social and economic
structure “lest we so disorganize our industries as to bring about a total economic collapse which in the end will do
more harm to the laboring class itself than to other elements of our community. . . I need the sympathetic
cooperation of all the elements in our population so that I may make substantial progress in this undertaking”. The
singing of the Internationale was a part of the program. Leaders expressed themselves as pleased with the manner
the Constabulary handled the situation, remaining in the Municipal Building “instead of going out into the street
with bayonetted guns, watching the paraders as if they were criminals”.

Oct. 3 . — Reported that the government has bought the S.S. Santa Ines of the Grace Line which operates between
Hawaii and Australia, and that the ship will be placed on the inter-island service; it is larger than the Mayon, having
a gross tonnage of 4,576.

Announced that Assem. Manuel Roxas, Chairman of the National Economic Council, has been appointed a member
of the Board of the National Development Company.

Oct. 5 . — President Quezon appoints 5 new judges including former Senator Emiliano T. Tirana; assigned to the
Court of First Instance of Rizal.

The Far East Oil Development Company is reported to have struck oil at a depth of 567 feet near San Andres,
Tayabas (Bondoc Peninsula); the amount available is not reported.

Oct. 7. — Announced that the National Development Company has brought the Insular Sugar Refining Company
from the Refined Syrups and Sugar Company of New Jersey for P3, 600, 000, including the company’s quota of

35.000 tons and its sugar refining process known as the “suchar” method; the Development Company has also
bought the Malabon Sugar Company from Smith, Bell & Company for P600.000, giving the government a total of

43.000 of the 50,000 ton quota of refined sugar allotted to the Philippines by the Tydings-McDuffie Act.

Announced that Dean Francisco Benitez, of the College of Education, University of the Philippines, has been
designated acting Director of the Bureau of Private Education vice Lino J. Castillejo who has become a member of
the technical staff of the National Economic Council.

Oct. 8 . — Announced that the government has bought 1000 hectares of land for 5 centavos a square meter off Calle
Espana, Manila, from the Tuason family, for the construction of a model housing district for workers; also
announced that the government is considering purchase of the Diliman Estate, acquired by the National Bank for
debt, as a possible new site for the University of the Philippines.

Oct. 9. — H. B. Pond, President and General Manager of the Pacific Commercial Company returns from a 6-months’
visit to the United States and tells the press there will be no “realistic reexamination’’ of American-Philippine
political relations unless the Filipino people request it and that even then there will be considerable opposition to
granting such a request. He states he was impressed by the ignorance and indifference of the American people with
respect to the Philippines who believe the Philippine question to have been settled, but states he finds this natural in
view of their being harassed by many problems of their own. The country is plagued with strikes and labor trouble
of every sort, heavy taxation, and so much government interference that most business men hardly know where to
turn. “The more one sees of the rest of the world, the more of an Eden the Philippines appears”.

Dr. Edward Charles Elliot, President of Purdue University, Indiana, arrives in Manila, on invitation of the Board of
Regents, to advise on the reorganization of the University of the Philippines.

Reported that a university professors association has recently been organized with Dr. Bernabe Africa as President,
Prof. Gabriel Bernardo as Vice-President, and Prof. Horacio Lava as Secretary.

Oct. 10 . — Reported that Brig. -Gen. Guillermo B. Francisco has been appointed Chief of the Philippine
Constabulary.

Isabelo de los Reyes, patriot, author, organizer of the first labor union in the Philippines, and one of the founders of
the Philippine Independent Church ( Aglipayano), dies in Manila, aged 74.

Oct. 11 . — President Quezon issues an order transferring for the third time the date of the taking of the census, this
time from November 15 to January 1, 1939, in order to eliminate, according to an announcement, political influence
in the appointment of enumerators and supervisors as the elections will be held on November 8.

The National Development Company organizes the Commonwealth Realty Corporation to take charge of the
administration of the model workers residence district. The Company accepts the resignation of Secretary of Finance
Antonio de las Alas as Chairman of the Board, as he is shortly leaving for the United States; he remains a member of
the Board.

Oct. 12 . — President Quezon issues instructions to all governors of provinces and mayors of municipalities to permit
everybody, regardless of party or political affiliation, to hold public meetings, following a conference with
Guillermo Capadocia, Communist leader, who protested against the action of certain authorities in interfering with
public meetings.

Oct. 15 . — In connection with the departure of Vice-President Sergio Osmena for the United States within a few
days, President Quezon issues a statement declaring: “I am sending the Vice-President to the United States as my
official representative to present the views of the government of the Commonwealth regarding contemplated

legislation covering the report of the Joint Preparatory Committee. The Resident Commissioner is, of course, the
representative of this government in its relations with the government of the United States, and the Vice-President is
not going to perform those duties, but his activities will be specifically devoted to that one task and others which
relate to the functions of the Department of Public Instruction”.

Announced that the request of Jesus Obieta, acting Collector of Customs, that he be allowed to resign has been
approved, and that Under-Secretary of Finance Guillermo Gomez will take over his duties in addition to his present
ones as Under-Secretary.

The United States

Sept. 16 . — The government, through the American Red Cross, is sending 60,000 barrels of flour to Spain for
distribution to the indigent on both sides in the civil strife.

Sept. 17 . — Reported from Puerto Rico that the United States plans to build a large air base there in connection with
Panama Canal defenses.

Sen. Key Pittman states at the American Legion convention in Los Angeles that he believes Britain and France have
done all that was possible to avoid a military climax in connection with the Czechoslovakian situation, and that
while the American people’s sympathies are with the small democracies, they rebel against the sacrifice of
American lives “in defense of democracies that can not be trusted to defend themselves”; "the Senate will not vote
for any treaty or measure authorizing entry into any foreign war or alliance or joint action with any foreign country
in behalf of any country at war”.

Sept. 19 . — Officials of the Bureau of Insular Affairs are said to be studying the possibility that the report of the Joint
Preparatory Committee on Philippine Affairs be withheld from Congress at its next session if international tension
does not abate.

Sept. 21. — Maj.-Gen. Oscar Westover, Chief of the U.S. Army Air Corps, and Sergeant Sam Hynes are killed at the
Burbank, California, Union Air Terminal, in a crash resulting from a stalling engine when preparing to land.

Sept. 22 . — The American Legion reaffirms its stand in favor of “universal and equal service in war time with profit
and private privileges for none”; Stephen F. Chadwick, Seattle lawyer and Democrat, is elected National
Commander.

A terrific 100-mile-an-hour hurricane and an accompanying tidal wave sweep New England, flooding 8 states,
inflicting enormous damage, and killing some 600 people.

Sept. 26 . — President Franklin D. Roosevelt sends a personal appeal to Fuhrer Adolf Hitler and President Edward
Benes of Czechoslovakia “on behalf of 130,000,000 people in this country and for the sake of humanity, not to
break off negotiations looking toward a peaceful, fair, and constructive settlement of the question at issue. . . I
earnestly believe that so long as negotiations continue, differences may be reconciled. Once broken off, reason is
banished and force asserts itself, and force provides no solution for the future good of humanity. . . The fabric of
peace on the continent of Europe, if not throughout the world, is in immediate danger. The consequences of its
rupture would be incalculable. Should hostilities break out, the lives of millions of men, women, and children in
every country involved most certainly would be lost under circumstances of unspeakable horror. The economic
system of every country involved might well be completely wrecked. . . It is the supreme desire of the American
people to live in peace; but in event of a general war, they face the fact that no nation can escape some measure of
the consequences of such a world catastrophe. . . It is imperative that peoples everywhere recall the civilized nations
of the world voluntarily assumed the solemn obligations of the Kellogg -Briand Pact to solve controversies only by
pacific means. In addition, most of the parties to the Pact signed other binding treaties obligating them to preserve
peace. Furthermore, all countries have today available, for such peaceful solution of any difficulties which may
arise, treaties of arbitration and conciliation to which they are parties. . .”

Stated in official circles that the European situation is likely to be a strong factor in preventing High Commissioner
McNutt from carrying out his plan to return from Manila soon by way of Europe; it is suggested that his presence in
the orient is desirable while the present acute situation continues.

Sept. 27. — President Roosevelt sends Hitler another message, declaring that the United States has no political
involvements in Europe and will assume no obligations for the conduct of the present negotiations, “yet it is our
right to recognize our responsibilities as part of a world of neighbors.”

He suggests a conference might be held at some neutral spot which would create an opportunity for the present and
related questions to be solved in a spirit of justice and fair dealing and in all probability with greater permanence.
“The question before the world is not a question of errors or of injustices committed in the past, but of the fate of the
world today and tomorrow. . . I do not and need not undertake to pass judgment on the merits of the dispute, but the
differences could be settled by peaceful means. . The alternative of a general war is unnecessary and unjustifiable. . .
In the light of the experience of this century, continued negotiations remain the only way by which the immediate
problem can be disposed of on a lasting basis. The resort to force in the Great War failed to bring tranquility —
victory and defeat alike were sterile. In the event it is necessary to supplement present negotiations, nothing stands
in the way of widening the scope of the conference to include all the nations directly interested. . .”

Sept. 28. — President Roosevelt sends a personal message to Premier Benito Mussolini "in the interest of preserving
world peace” which is not released for publication. The Tokyo Foreign Office spokesman states that Ambassador
Joseph Grew called on Foreign Minister K. Ugaki and requested that Japan seek further Czechoslovakian-German
negotiations along the lines of the Roosevelt proposal, General Ugaki replying that the suggestion “will be given
serious consideration from Japan’s own standpoint and appropriate measures taken”.

Sept. 29. — Mayor F. LaGuardia of New York issues a proclamation summoning New Yorkers to pause for 5 minutes
at 12:30 to “pray for the peace of the world”.

Thomas Dewey, New York City District Attorney famous for his drive against racketters, is nominated Republican
candidate for Governor of the state.

Sept. 30. — Secretary of State Cordell Hull states that the Munich agreement “affords a universal sense of relief,” but
officials refuse to comment on the terms agreed upon. The New York Timesstates: “Let no man say too high a price
has been paid for peace in Europe until he has searched his soul and found himself willing to risk the lives of those
nearest and dearest to him. . . Let no man say that the statesmen of Britain and France have committed an outrage.

Joaquin M. Elizalde takes the oath of office as Philippine Resident Commissioner in the presence of the Secretary of
War Harry H. Woodring. He is considered well qualified for the post in view of his wide business experience and
his membership on the Joint Preparatory Committee.

Oct. 2. — The State Department reveals that 1 1 other American republics joined President Roosevelt in his appeal to
Hitler and Benes.

Reported from “well-informed sources” in Mexico that the government has indicated a willingness to suspend
expropriation of American-owned farms until an international commission has established the value and set terms of
payment, and it is learned at Washington that Secretary Hull told Mexico it only had to indicate it would abide by
such a commission’s rewards, for the American government to send a conciliatory note, thus ending the exchange of
acrimonious correspondence.

Oct. 3. — Under-Secretary of State Sumner Wells states in a radiocast that before the President sent his second
message to Hitler the State Department had received “information of unquestioned authenticity . . . that 2 p. m.,
September 28, had been fixed for the entrance of the German armies into Czechoslovakia”.

Oct. 7. — The State Department announces that a note has been sent to Italy recommending that American Jews there
be left to pursue their peaceful occupations without molestation, pointing out that Italian nationals in the United
States are not hampered by discriminatory laws. The Italian government is reported to be “irritated”.

Oct. 10 . — The Supreme Court refuses to review the case of Thomas J. Mooney, labor leader serving a life term in
connection with the Preparedness Day bombing in San Francisco in 1916.

Oct. 12 . — Reported from Washington that both the American Federation of Labor and the Committee for Industrial
Organization are contemplating extending their influence to the Philippines, perhaps first in helping to organize
longshoremen and dock workers’ unions. The CIO has been active in Hawaii where a water-front strike has just
been settled. Pointed out that such a movement would tend to cement American-Philippine ties as heretofore
American labor has been generally opposed to measures facilitating either trade or political relations beyond the
mainland borders.

Naval officials state that the Japanese thrust into South China further demonstrates that America’s chief strategic
interest will likely continue to be in the Pacific except in the case of an actual outbreak of war in Europe and that the
problem of future American-Philippine relations has been projected sharply into the foreground. Observers say that
there has been no relaxation of studies regarding an American defense system in the Pacific area and believe that the
Aleutian-Hawaii-Canal Zone defense triangle may be re-enforced in the near future.

Secretary Woodring asks the Department of Justice to seek dismissal of the suit of B. M. Chancy, Filipino lawyer,
challenging the constitutionality of the Philippine Independence (Tydings-McDuffie) Act on the ground that
Congress lacks authority to alienate sovereignty over any territory of the United States”. Woodring makes no
reference to the technical or legal aspects, but states the War Department is interested in seeing that the Act is
upheld.

The American Federation of Labor convention at Houston, Texas, reaffirms its opposition to fascism, nazism, and
communism, and also approves a resolution urging the people to boycott Japanese goods.

Oct. 14 . — Bernard Baruch, Chairman of the War Industries Board during the World War, after returning from a 3-
months confidential mission in Europe for the government, is reported to have warned President Roosevelt that
Hitler plans to make a thrust for nazism in South America as German expansion in Europe will not result in great
gains in raw materials or markets; already Germany, Italy, and Japan have made deep inroads in South America.

President Roosevelt tells the press that recent foreign developments have led to a major survey of American defense
needs and intimates that the defense budget may be considerably increased.

Other Countries

Sept. 15 . — Some 140 Arabs are killed or wounded in a battle between British troops and a large band of Arabs north
of Jerusalem. During the past 7 months there have been 222 murders, 288 attempted murders, and 1252 cases of
serious assault in the Holy Land.

Sept. 16 . — Japanese claim capture of Kwangchow and Shangcheng in the Taipeh foothills which protect Hankow
from the north; also occupation of Wusueh, on Yangtze north bank, opposite Matouchen.

Sept. 17 . — Prime Minister Neville Chamberlain is reported to have told King George of Fuhrer Adolf Hitler’s
demand and to have said that Britain “must agree to any deal so long as war can be averted”. A British Cabinet
member states: “The outlook is terrible”. Some London newspapers call Chamberlain’s move “another Hoare -Laval
deal” — which led to Italy’s rape of Ethiopia. Konrad Henlein, Sudeten leader and fugitive from Czechoslovakian
justice as accused of treason, is reported arming Sudetens on the German side of the border. The Hungarian
government protests against “recent Czech measures”, presumably the calling out of army reserves.

Dr. Wellington Koo, at League of Nations meeting, states that the present situation in Europe is not unconnected
with the war of aggression which is being allowed to continue in Asia and asks whether his hearers are prepared to
accept the pronouncement that the League is dead. He states 1,000,000 civilians have been killed in China,
30,000,000 rendered homeless and destitute, and charges that Japan is deliberately encouraging the narcotics trade
“in order to destroy the soul as well as the body of the Chinese people”. The British and French delegations are
reported to be ready to support China’s demand for the application of Article 17 of the Covenant.

British naval vessels in the Far East are concentrating at Hongkong.

Sept. 18 . — Premier Milan Hodza of Czechoslovakia states in a speech that the government will reject proposals for a
plebiscite in the Sudeten areas. The Foreign-Office spokesman states, “There is only one answer to the reported
demands; we will defend every millimeter of our territory”. A state of emergency has been proclaimed. Men
believed to belong to Henlein’s “Sudeten Free Corps” twice attack the Asch customs house with machine guns,
wounding two employees, but retreat across border after heavy return fire. Germany said to have notified the
government it will take reprisals against Czech citizens in Germany if any Sudetens are courtmartialled. Hitler in an
interview with G. Ward Price of the London Daily Mail states that the “existence of Czechoslovakia as an ally of
Russia is a threat pointed at the heart of Germany” and has forced him to create an air force that in turn has led
Britain and France to redouble theirs. He states Germany does not dream of attacking France and does not want to
fight England. “They have no interests at stake. . . The Czech trouble must be ended once and for all. It is a tumor in
the whole European organization and if allowed to continue will infect international relations until they break down
in fatal collapse. While Czech appression of the German minority keeps Europe at fever heat, I must be ready for
whatever may come. . . The creation of the heterogeneous Czechoslovakian republic was lunacy. . .” Premier
Edouard Daladier and Foreign Minister Georges Bonnet of France arrive in London, and after a 12 -hour conference
(the conferees are reported as seeming very tired), Chamberlain issues a communique st